New Zealand’s Comvita has entered into a takeover agreement with fellow Mānuka honey producer Florenz. Florenz, known for its Wedderspoon Organic brand, has proposed a price of NZ$0.8 (approximately $0.48) per share for Comvita.
In a stock-exchange announcement made on August 18, Comvita’s board expressed unanimous support for shareholders to approve the proposal. This offer signifies a remarkable 67% premium over Comvita’s closing stock price from August 15, valuing the company’s equity at around NZ$56 million and its enterprise value at approximately NZ$119 million.
“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,” stated Comvita chair Bridget Coates.
The company has encountered ongoing challenges due to structural shifts within the Mānuka honey sector, which continues to experience oversupply, price fluctuations, and intense online competition.
Florenz operates under Masthead Limited, based in Christchurch, and aims to develop New Zealand’s largest health and wellness export business. The portfolio of Florenz includes Xtend-Life, a supplements exporter, and the sports-nutrition brand 2before Performance Nutrition.
Coates highlighted that “the environment is fragmented, with several participants under financial strain.” She added that industry dynamics necessitate swift consolidation, as leadership in the sector requires capital strength, scale, and agility, which Comvita currently lacks due to its capital structure.
In June, Comvita appointed Karl Gradon, previously CEO of a rival Mānuka honey producer, as its new chief executive. Gradon has extensive experience, having led New Zealand Mānuka Group from December 2015 to June 2018 and, more recently, serving as CEO of dairy processor Miraka until April.
The company is actively working to reposition itself as a premium brand, emphasizing investments in marketing, distribution, supply security, and scientific credibility.
Coates mentioned, “Significant capital was invested in brand equity, distribution reach, supply security, and scientific credibility to position Comvita for this opportunity.” However, she noted that several investments did not yield expected returns due to intensified competition and oversupply, ultimately reducing profitability.
“Comvita has taken urgent steps to reduce costs, simplify operations, and protect long-term brand strength,” she stated, recognizing that these strategies have started delivering positive early results. Despite this progress, these measures alone are insufficient for strengthening the balance sheet or ensuring sustainable long-term growth.
Additionally, in June, Comvita issued a warning regarding a potential “material” impairment charge for the 2025 financial year, which concluded at the end of that month. Coates acknowledged that trading conditions remain challenging, expressing expectations of a “significant loss” alongside a “material write-down” of net assets stemming from impairment tests on inventories.
She added, “Comvita’s lenders are providing short-term accommodations but have indicated that a longer-term solution—either through debt repayment or potential strategic transactions—is necessary.”
Comvita is scheduled to release its full-year results on August 29.
