New Zealand’s Comvita has agreed to a takeover bid from fellow Mānuka honey supplier Florenz.
Florenz, which owns honey brand Wedderspoon Organic, has offered NZ$0.8 ($0.48) a share for Comvita.
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In a stock-exchange filing today (18 August), Comvita said its board “unanimously” recommended shareholders vote in favour of the bid.
The offer represents a 67% premium to Comvita’s closing share price on 15 August, values the company’s equity at approximately NZ$56m and giving it an enterprise value of around NZ$119m.
“Recent years have been challenging for Comvita and its shareholders, with sustained sector pressures, softer market conditions and the demands of a complex turnaround weighing on performance,” Comvita chair Bridget Coates said.
“Comvita has faced ongoing pressure from structural changes in the Mānuka honey sector, which continues to face oversupply, price and demand volatility, and intense competition, including online.
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By GlobalDataFlorenz is a subsidiary of Christchurch-based Masthead Limited and was set up to develop New Zealand’s largest health and wellness export business.
Its portfolio also includes supplements exporter Xtend-Life and sports-nutrition brand 2before Performance Nutrition.
Coates added: “The environment is fragmented, with several participants under financial strain. Industry dynamics require consolidation at pace but sector leadership demands capital strength, scale and speed, which are not available to Comvita under its current capital structure.”
In June, Comvita has appointed Karl Gradon, a former CEO of a rival Manuka honey producer, as its new chief executive. From December 2015 to June 2018, he was CEO of New Zealand Mānuka Group. More recently, he was CEO of New Zealand dairy processor Miraka for three years up to this April.
The company has focused on repositioning itself as a premium brand, investing in marketing, distribution, supply security and scientific credibility.
Coates said: “Significant capital was invested in brand equity, distribution reach, supply security and scientific credibility to position Comvita for this opportunity. A number of these investments did not meet their objectives or deliver expected returns. In parallel, market growth did not materialise at the expected pace, competition intensified and oversupply created additional headwinds, reducing profitability.
“Comvita has taken urgent steps to reduce costs, simplify operations, and protect long-term brand strength – which are delivering early results – and the brand remains the category leader in key markets. However, these factors alone are not sufficient to strengthen the balance sheet or position the business for long-term sustainability.”
June also saw Comvita warn it could book a “material” impairment charge for the 2025 financial year, which closed at the end of the month.
Commenting on trading conditions Coates said today they “remained challenging”, with the group expecting a “significant loss” as well as a “material write-down” of net assets as a result of impairment tests against inventories.
She added: “Comvita’s lenders are providing short-term accommodation but have signalled that a longer-term solution – through debt repayment or potential strategic transactions – is required.”
Comvita will present its full-year results on 29 August.
