Sky TV co-founder Terry Jarvis offloads manuka honey business to NZX-listed Me Today for $36m
Loss making healthcare company Me Today has signed a deal to acquire manuka honey producer King Honey for $36 million and plans to raise $15.75m from third party investors to help fund the purchase.
King Honey was founded by Sky TV co-founder Terry Jarvis. It has a network of 18,000 beehives across the North Island and in Marlborough. The business had revenue of $16.5m in the year to March 31 and Ebitda of $3.87m, Me Today said in announcing the deal at the same time as its own annual result.
Me Today chairman Grant Baker said the King Honey business was a logical fit given an overlap in the two company’s products. Me Today promotes skincare products and vitamin and mineral supplements.
King Honey operates the BEE+ brand and the Superlife brand. The company is carrying inventory of approximately 540 tonnes of premium manuka honey while its hive network has capacity to produce in excess of 350 tonnes of honey annually.
“The acquisition will enable Me Today to expand its existing lifestyle, health and wellness businesses,” Baker said. Terry has created an impressive Manuka Honey business which is well established to provide a platform for future growth”.
The purchase price includes a cash component of $21m, the issue of $10m new Me Today shares to Jarvis at 8.8c a share and a subordinated note of $5m repayable in three years.
Me Today shares gained 9.64 per cent to 9.1c on the news.
Baker has been involved with several listed companies, including 42 Below, Salvus Strategic Investments and Moa Group.
Jarvis shot to fame when he and Craig Heatley introduced Sky TV to New Zealand.
Since then he has dabbled in various business and property ventures including one of the country’s biggest avocado orchards, which he sold in 2015 to focus on King Honey.
“We are excited to see the business become part of the Me Today Group. It is a great fit for King Honey and I believe there is significant opportunity for growth with both companies working together,” Jarvis said.
Me Today, which listed on the NZX in April 2020 via a reverse takeover by CSM, posted a net loss of $2.86m for the year to March 31, 2021, better than the previous year’s $4.98m loss.
The company, which counts All Blacks star Beauden Barrett as a brand ambassador, said its net revenue – less marketing services provided by a customer – was $1.14m, up from $566,000 in financial year 2020.
Looking ahead the company said it expected gross revenue for the 2022 financial year to be at least $3m.
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