Comvita Limited announced that it had acquired specialist honey retailer HoneyWorld Singapore and its consumer brands in a transaction valuing HoneyWorld at SG$ 8.5 million (NZ$10.36M).
HoneyWorld is the largest Mānuka honey retailer in Singapore and represents a highly strategic acquisition into a business that is the market leader in core Comvita categories in one of Asia's premium growth markets.
Combined with their existing business in this market, Comvita's market share in the Mānuka honey category in Singapore will be around 50 percent. Comvita and HoneyWorld have identified incremental opportunities to grow household penetration and share of the category in this crucial market over time.
This acquisition is immediately accretive to Comvita, with a forecasted 24 percent increase in return on capital employed (ROCE) for the Comvita group. For the Comvita group, this acquisition is forecast to deliver a 22 percent improvement in EPS. HoneyWorld is forecasting revenue in FY24 of over SG$13M.
Comvita CEO David Banfield said that this agreement represented a highly strategic opportunity for Comvita to acquire a high-quality business that is the market leader in Singapore.
"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," said Banfield.
Banfield continued that Comvita was also pleased to have retained the services of its founder Pearline Goh, adding more talent to the business.
"We see strong demand in Asian markets, and with this acquisition, we will gain market share and, importantly, accelerate delivery of our Financial Year 2025 target of $50M EBITDA."
Pearline Goh, Founder and Director of HoneyWorld, said that Goh was thrilled to be part of the Comvita family, as they have a shared vision of being a premium wellness and lifestyle brand. As customers become more discerning, Comvita's scale and ability to introduce quality natural products backed by world-class scientific know-how as being sustainable and vital.
HoneyWorld was founded in 1997, operates 18 outlets in Singapore with a loyal consumer following, and is poised for significant growth. Comvita will supply HoneyWorld's brands in-store and grow the Comvita Mānuka brand and range. Comvita is very excited to work with the HoneyWorld team, and customers will continue seeing the same people in their daily honey shopping.
