Comvita's healthy buy

Listed health products company Comvita has bought neighbouring Te Puke operator NZ Vitalife for $250,000 in cash and shares.

NZ Vitalife, which makes herbal products, has a turnover of about $200,000 a year, compared with Comvita's $31 million last year.

Comvita chief executive Brett Hewlett said NZ Vitalife would have an immediate positive effect on his firm's finances.

It was "a profitable little business" which would be earning from day one.

NZ Vitalife sells mostly in New Zealand, but also exports to Britain and Australia.

The purchase will give Comvita - which is listed on the NZ alternative exchange - a direct source of echinacea for its Winter Wellness elixirs, reducing costs.

NZ Vitalife products will be marketed under Comvita's brand.

Hewlett said Comvita's turnover was about 20 per cent above last year's.

Comvita shares closed yesterday up 8c at $3.46.