Eve in $3m buy

Subiaco-based Eve Investments has purchased tea tree oil business Jenbrook in cash and scrip for about $3.4 million.

Under the deal, Eve will pay a cash consideration of $2.9 million for the NSW-based company, along with a payment of $272,040 and the issue of 30.2 million shares to extinguish management loans.

Jenbrook is an organic tea tree farm located in the Northern Rivers region of NSW that supplies locally and internationally.

The company’s 49 per cent subsidiary, Naturally Australian Products, reported revenues of $2.1 million for the 2017 financial year from its tea tree products.

Jenbrook founder Bryan Eason will remain on in a consulting role, while NAP founder Robyn Ingersole is set to become chief executive of both companies.

“The acquisition of Jenbrook will be an important step for Eve in terms of establishing a revenue base with tremendous growth opportunities and importantly it creates a strong working synergy with Meluka Honey and the opportunities being pursued with THC,” investment director Ben Rohr said.

“By having ownership of the Jenbrook assets, Eve can exercise greater control over expansion plans for the Jendale plantations whilst Eve’s shareholding in NAP will assist with accelerated sales growth for both the Jenbrook and Meluka Honey suite of products.”

Shares in Eve were flat at 0.9 cents each today.