28 Aug

Comvita to issue shares for olive buy

Comvita plans to issue a $8-$12 million share placement to cover the $23 million purchase of Olive Products Australia Pty, a grower and manufacturer of complementary medical products.

Olive Products, based near Brisbane, has developed a system to extract active compounds from olive tree leaves for use in therapeutic products. The business includes a 500,000 tree olive grove.

The $23 million ($A20 million) purchase price does not include a two-year performance hurdle that could add $A6 million to the price.

Comvita chief executive Brett Hewlett says Olive Products has shown compound annual growth of more than 50 percent over the past 5 years and is very profitable.

The purchase is part of a strategy to move Comvita away from dependence on bee products and is the company’s third acquisition this year.

The company is now in a trading halt as the institutional share placement proceeds.

[Source] Click here

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