Comvita has bought speciality honey retailer HoneyWorld Singapore (file picture). Photo: 123RF
Honey producer and exporter Comvita is eyeing further growth after acquiring a Singaporean honey retailer.
The company has bought speciality honey retailer HoneyWorld Singapore and its consumer brands in a deal worth $SG8.5 million ($NZ10.4m).
Comvita said HoneyWorld was the largest mānuka honey retailer in Singapore and represented a highly strategic acquisition in one of Asia's premium growth markets.
The deal would give Comvita a 50 percent market share in the mānuka honey category in Singapore.
"Together, Comvita and HoneyWorld have identified incremental opportunities to further grow household penetration and share of the category in this important market over time," Comvita told the local share market.
HoneyWorld was forecasting revenue of just over $SG13m ($NZ15.6m) in 2024.
The acquisition would be funded by debt, Comvita said.
"This agreement represents a highly strategic opportunity for Comvita to acquire a high-quality business that is the market leader in Singapore," Comvita chief executive David Banfield said.
"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," he said.
Banfield said the acquisition would help accelerate its goal of achieving underlying earnings of $NZ50m in 2025.
HoneyWorld founder Pearline Goh said her company and Comvita shared a vision of being a "premium wellness and lifestyle brand".
"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," Goh said.
HoneyWorld was founded in 1997 and operates 18 outlets in Singapore.