CVT
25/05/2016 09:04
JOINTV
PRICE SENSITIVE
REL: 0904 HRS Comvita Limited
JOINTV: CVT: Comvita and Putake Group announce Joint Venture
Global natural health products company Comvita (NZX:CVT) and Putake Group
Limited (Putake), a Blenheim-based apiary management business, today
announced their agreement to form a 50:50 joint venture (JV), Putake Group
Holdings Limited.
Comvita CEO Scott Coulter said the JV with Putake aligns with the Comvita
strategy of securing supply to meet the global demand for Manuka honey.
"Working with Putake will enable us to secure honey supply in the top half of
the South Island as well as providing a platform for future growth. The JV
will enable us to accelerate the development of a wholesale honey business in
the South Island, through speed of execution, immediate scale, finance and
resourcing to secure supply."
Mr. Coulter said, "Putake has extraction capability and pollination services
and are members of the Comvita Supplier Partnership Group (SPG) Share Scheme.
We've been working with Dale and Renee DeLuca for several years, and they
have a proven track record of success within both the apicultural and
commercial worlds. They also have excellent relationships with a variety of
land owners in the South Island."
Currently producing a wide variety of honeys, including Manuka, Kamahi,
Clover and Wildflower, Putake own 1,200 hives with an additional 2,800 hives
under management through joint venture arrangements. It operates in the
Upper, East and West Coasts of the South Island and in North Canterbury.
Putake Director, Renee De Luca said, "We believe that joining with Comvita as
an equity partner will align us with a business that has significant industry
and market presence, scale and relationships."
"Working as partners will assist Putake's speed of execution, as we continue
to focus on growth opportunities that exist throughout our network of apiary
operations."
The consideration for the acquisition will include $2 million of Comvita
shares, based on a 20 day Volume Weighted Average Price, and will be issued
out of existing treasury stock by Comvita. Settlement, subject to final
documentation, will occur on 1 July 2016.
Ends
For further information:
Comvita Chair, Neil Craig, 021 731 509
Comvita CFO, Mark Sadd, 027 707 9698
Comvita Communications Manager, Julie Chadwick, 021 510 693
Putake Group, Director, Renee De Luca, 021 473 633
Background information
About Comvita (www.comvita.com)
Comvita (NZX:CVT) is a global natural health products company committed to
the development of innovative products, backed by ongoing investment in
scientific research.
End CA:00282937 For:CVT Type:JOINTV Time:2016-05-25 09:04:27
