Rotorua Trust Takes a Stake in Hubbard’s Cereal
17 December 2009
Media Release
Rotorua Trust Takes a Stake in Dick
Hubbard’s Cereal Business
The Rotorua Energy Charitable Trust (Rotorua Trust) has taken a 35.6% stake in the privately owned cereal business, Hubbard Foods for an undisclosed sum.
Rotorua Trust Chairman Grahame Hall said “the investment in Hubbards fits perfectly with the trust investment strategy in the area of private equity.”
The Trust is a stable and long term investor, which
invests in businesses with solid growth prospects, strong
cultures, quality people and high standards of integrity.
Grahame Hall says “Hubbards stands out as local
business that matches our ethics and is more than able to
provide a satisfactory commercial return over the long
term.”
Dick Hubbard said “I was delighted to be
approached by an organisation with similarly aligned values,
and this new relationship will assist Hubbards achieve some
of our ambitious long-tem growth goals.”
The
Rotorua Trust distributes between $3 million and $5 million
annually to the local community from the returns earned from
an investment fund of $115 million, as at March 2009. The
trust has contributed approximately $75 million to the
Rotorua community over the past 15 years.
Hubbard Foods is committed to a development programme across the areas of new market innovations, energy efficiencies and plant expansions. These initiatives have the full support of the company’s bankers and new shareholders.
Dick Hubbard says “While we have a new 35.6% Foods equity partner the day to day operations of Hubbards will remain under the current senior management team with no change of direction over the medium term.”
Mr Hubbard will remain as Chairman, and Dick and Diana Hubbard will retain majority ownership of Hubbards.
The Rotorua Trust was created
so that some of the funds born out of the corporatisation of
the Rotorua Electricity Company could be retained and used
for the benefit of the community in Rotorua and the
surrounding districts.
Rotorua Trust Chairman Grahame
Hall says “the management team at Perpetual Capital
Management, the trust investment advisors, will continue to
seek out further opportunities to invest in small to medium
New Zealand business’s with strong cultures, quality
people and which were able to provide a satisfactory
commercial return over the long term.”
Perpetual Capital Management Limited (PCML), a wholly owned subsidiary of the Rotorua Trust, is invested in New Zealand, Australia and international equities, private equity, unlisted property, and fixed income. PCML has a policy of investing directly into as many asset classes as possible.
ENDS