Shares in mānuka honey exporter Comvita rallied after the company said it Acquired specialist honey retailer HoneyWorld Singapore and its consumer brands for $10.36m.

Comvita said the debt-funded acquisition would improve its earnings per share by 22 per cent.

By late morning the company’s shares were up 19c or 6.25 per cent at $3.23.

HoneyWorld is the largest mānuka honey retailer in Singapore.

Comvita said it was a “highly strategic acquisition” of 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 per cent, the company said.

Together, Comvita and HoneyWorld have identified incremental opportunities to further grow household penetration and share of the category in this important market over time, it said.

Comvita say it's getting strong results in retail stores across Asia. Photo / 123RF

“This acquisition will be immediately accretive to Comvita with a HoneyWorld forecasted 24 per cent increase in return on capital employed once integrated,” chief executive David Banfield said.

HoneyWorld has forecast revenue in 2024 of over S$13m ($15.85m).

“This agreement represents a highly strategic opportunity for Comvita to acquire a high-quality business that is the market leader in Singapore,” Banfield said.

“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.”

“We see strong demand in Asian markets and with this acquisition we will gain further market share and importantly, accelerate delivery of our 2025 target of $50m ebitda (earnings before interest, tax, depreciation and amortisation).”

HoneyWorld, founded in 1997, operates 18 outlets in the Singapore market.

Comvita will supply the HoneyWorld brands in store, as well as grow the Comvita mānuka brand and range.

On Monday, Comvita said it had signed a long-term partnership with Olé supermarkets in China.

Comvita, which has a June 30 balance date, usually reports its annual result in August.

Jamie Gray is an Auckland-based journalist, covering the financial markets and the primary sector. He joined the Herald in 2011.