Comvita, the New Zealand-based honey manufacturer, has announced the acquisition of HoneyWorld Singapore.
HoneyWorld is a retailer that also has own-branded products. In a stock-exchange filing, Comvita suggested the deal “represents a highly strategic acquisition into a business that is the market leader in core Comvita categories in one of Asia's premium growth markets”.
The company did not disclose how much it paid for HoneyWorld but it has been widely reported in New Zealand’s media as being NZ$10m ($6.2m).
Like Comvita, HoneyWorld specialises in Manuka honey. Post-deal, the Kiwi company will supply the HoneyWorld own-brands sold in its stores and push its own Comvita honey. The retailer, founded in 1997, operates 18 outlets in the Singapore market.
Comvita CEO David Banfield said: “This agreement represents a highly strategic opportunity for Comvita to acquire a high-quality business that is the market leader in Singapore. We are achieving strong results in our other retail stores in markets throughout Asia and are delighted to add HoneyWorld's renowned capability and influence to the Comvita family.
“We are also pleased to have retained the services of its founder Pearline Goh, adding more talent to our business. We see strong demand in Asian markets and with this acquisition we will gain further market share and importantly, accelerate delivery of our FY25 target of NZ$50m EBITDA.”
The Singapore business is forecasting revenue in FY24 of more than NZ$15.9m.
HoneyWorld founder Goh said: “As customers become more discerning, we see Comvita’s scale and ability to introduce quality natural products backed by world-class scientific know-how as being sustainable and important.”
