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

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