Comvita backs US$33.6M takeover bid from Florenz – owner of Wedderspoon Organic

NEW ZEALAND – Mānuka honey producer Comvita has agreed to a takeover proposal from fellow industry player Florenz, which owns the Wedderspoon Organic brand. 

Florenz has offered NZ$0.80 (US$0.48) per share, valuing Comvita’s equity at around NZ$56 million (US$33.6 million) and giving the company an enterprise value of approximately NZ$119 million (US$71.4 million).

The offer, announced on August 18, represents a 67% premium on Comvita’s share price as of August 15. 

Comvita’s board of directors has unanimously recommended that shareholders approve the deal, describing it as a strategic solution to ongoing sector and financial challenges.

“Recent years have been difficult for Comvita and its shareholders,” said chair Bridget Coates. “The Mānuka honey sector continues to face oversupply, price volatility, and growing online competition, all of which have weighed on performance.”

Florenz is part of Christchurch-based Masthead Limited, which only last year created a new holding company after acquiring Wedderspoon, a leading Mānuka honey brand in North America. 

Masthead is now building what it calls New Zealand’s largest health and wellness export platform, with a portfolio that also includes Xtend-Life, a dietary supplements exporter, and 2before Performance Nutrition, a sports-nutrition brand.

Coates noted that the fragmented industry landscape is forcing consolidation, with scale, capital strength, and agility becoming critical to maintaining leadership. 

She said Comvita’s current capital structure limits its ability to compete effectively on these fronts.

In June, Comvita appointed Karl Gradon, former head of New Zealand Mānuka Group and, more recently, dairy processor Miraka, as its new chief executive. 

Gradon has been tasked with strengthening the company’s premium positioning by investing in marketing, distribution, supply security, and scientific credibility.

“Significant capital has gone into building Comvita’s brand and operations,” Coates said. “However, some investments have not delivered expected returns, and profitability has been impacted.” 

She added that the company has reduced costs, simplified operations, and taken steps to protect long-term brand equity, but these actions alone cannot fix the balance sheet or guarantee sustainable growth.

The company also warned in June of a likely “material” impairment charge for the financial year ending June 2025. 

It expects a significant loss and a write-down of net assets following inventory impairment testing. 

Lenders have provided short-term relief but signalled the need for a longer-term solution, either debt repayment or strategic alternatives such as a merger or acquisition.

If approved by shareholders, the takeover would give Comvita access to deeper resources and greater global reach. 

Comvita is set to release its full-year results on August 29, which will give further clarity on its financial position ahead of the shareholder vote.

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