PEP buys Manuka Health

FOOD and healthcare firm Manuka Health New Zealand has been snapped up in a sweet deal with a major private equity company.

The company, which was founded in 2006, runs the biggest honey factory in New Zealand and sells its products in 50 countries.

Yesterday it announced that it had been bought out by Pacific Equity Partners (PEP), subject to Overseas Investment Office approval.

PEP is the biggest private equity firm in Australia and New Zealand, with more than A$6 billion (NZ$6.7b) of funds under management. It has also been involved with major names such as Griffin’s Foods and Tegel.

Manuka Health founder and chief executive Kerry Paul would not reveal the sale price, but said that he and his fellow shareholders got ‘‘a very good return’’.

He was just as excited by the benefits of partnering with PEP, whose extensive experience made it the ideal partner for the next stage of the business.

‘‘We’re looking at transforming ourselves from selling functional foods and dietary supplements, into selling medical products,’’ Paul said. ‘‘To do that you have to have properly designed trials.’’

The current management team would be staying on, and looking to add more expertise, he said.

Growth opportunities in New Zealand and Australia remained the priority. ‘‘[But] greater capital access will also allow us to accelerate our international strategy across key regions such as China and the United States.’’

The chemistry behind manuka honey’s healing power was revealed in 2006. The company decided to capitalise on the naturally occurring compound methylglyoxal, which scientists found had antibacterial properties.