Comvita takes Kiwi Bee

Honey products company Comvita has taken ownership of a group of beekeepers supplying medical-grade honey.

Comvita made the $2.15 million purchase of Kiwi Bee Business in December last year but took final control of the company on June 1.

The deal was mostly paid for in cash but 20 per cent was made up of Comvita shares. The shares transaction was announced yesterday through the stock exchange. It involved about 0.27 per cent of Comvita's issued shares at $2.80 per share.

Chief executive Brett Hewlett said the purchase would help ensure security of supply.

Kiwi Bee Business includes 3000 hives in the North Island and a honey extraction facility. Manuka honey is well known for its healing properties and Comvita produces wound dressings for the US market.

Shares in Comvita fell 8c to $2.02 in a broadly lower sharemarket, having ranged between $1.43 and $3.99 during the last year.

- NZPA