Manuka Health NZ Limited
Manuka Health NZ Limited
Manuka Health NZ Limited
Manuka Health NZ Limited
COMPANY

Manuka Health NZ Limited

SECTOR

Nutraceutical

SHAREHOLDING

20%

LOCATION

Auckland, Te Awamutu, Carterton

INVESTMENT DATE

May 2012

INVESTMENT

Manuka Health NZ is a pioneer in developing innovative natural products utilising the unique healing properties of bioactive compounds found only in New Zealand native flora and fauna, specifically in Manuka honey.

In May 2012 Waterman injected capital into the company to support its growth strategy and received a 20% shareholding. As with all of our investements one of the directors of Waterman joined the board of directors, in this case Chris Marshall.

INVESTMENT RATIONALE

The health and nutrition sector is growing internationally on the back of a number of compelling global trends such as an ageing population, ineffectual public and private health systems and also increased consumer awareness. Within this, demand for manuka honey is growing faster than supply and showing no signs of abating. Manuka Health is well placed to exploit the many benefits inherent in this uniquely New Zealand product.

WATERMAN VALUE ADD

Funding assisted with the construction of a $10m processing facility, trebling production capacity and delivering a number of operational efficiencies leading to margin expansion;

Assisted management to implement a number of initiatives to secure future honey supply;

Assisted with certain key senior appointments;

Supported further investment into R&D;

Encouraged industry regulation.

ACHIEVEMENTS

During the period of Waterman's investment the company's turnover increased from $17m at the time of investment to $70m in the year of sale and earnings grew at a faster rate;

The business became the clear number two industry player which put it on the radar of international trade and financial investors as an acquisition target;

Following a number of unsolicited approaches the business sold in December 2015.