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Natural healthcare products company Comvita is poised to buy Australian-owned wound care specialist Medihoney for A$6 million ($6.7 million) from its parent Capilano Honey.
The deal, yet to receive regulatory approval or the nod from Capilano's shareholders, continues NZX-listed Comvita's high-growth phase, following a $9.03 million purchase of its Hong Kong distributor, GreenLife, in March, and further investment in US-based Derma Sciences last year.
Comvita chief executive Brett Hewlett said the acquisition of Medihoney, whose products are based on biologically active honeys, would boost his company's global reach, adding a global distribution network in Australia and Europe, and strengthen its position in the US$7 billion ($9.36 billion) global wound care market.
"The acquisition of Medihoney will again increase Comvita's competence in the manufacture and marketing of advanced wound care products, cementing our stake in this area," he said.
The purchase would consist of A$5.5 million in Comvita shares and A$500,000 in cash. If the deal is successful, Medihoney will merge with Comvita on July 1, giving Australian honey giant Capilano a share of more than 8 per cent in the Bay of Plenty company. Comvita shares fell 6c to $3.94 on the day of the announcement.
