Capilano Honey seeks $16.8 million for business expansion
Capilano Honey this week announced intentions to raise AUD $16.8 million in capital to fund business growth.
Capilano says the money will fund the acquisition of beekeeping enterprises, reduce debt and help support marketing of new products.
“Capilano has a pipeline of potential beekeeping opportunities and intends to continue its strategy of acquiring strategic assets that meet its objectives,” the company said.
The company also said it has an “industry first” therapeutic product that will be launched by the end of 2016.
“Management believe this product has the potential to further grow the total domestic honey segment and Capilano’s presence in this market, and will benefit from the scale built through previous acquisitions,” Capilano said.
In March 2016 Capilano entered into a 50:50 producer Comvita to expand its Manuka (or Leptospermum) honey operations.
At the time, Capilano said it decided to enter into the partnership with the desire to secure greater honey supply and grow its operations.
Capilano is Australia’s largest honey packer. In the six months ending the 31 December 2015 it achieved record revenue and earnings growth.