Dawn Raid Entertainment director Danny "Brotha D" Leaosavai'i said Raggamuffin was an iconic New Zealand summer festival and the company was excited to be on board.
"We wanted to assist bringing in new changes that will enhance Raggamuffin Music Festival, not only with the best line-up for any festival this summer but also a new venue," he said.
The headline acts are reggae legends UB40 - including Ali Campbell - and American hip-hop and rap exponent Ice Cube.
The concert will be held on two stages on December 13 and will also feature leading Pacific reggae artist Fiji, Jamaica's Etana and Chronixx, and England's Gappy Ranks - who will play a set with New Zealand's own P-Money.
They will be joined by more Kiwi acts including Katchafire, Aaradhna, House of Shem and Tomorrow People.
The one-day event will now feature two stages - one reggae, and one "urban".
"We asked our fans who they would like to have at Raggamuffin and we were overwhelmed by the requests for UB40. We're very pleased to be able to bring this iconic reggae act back to the festival," Mr McManus said.
The Rotorua District Council has one year left on its contract with Mr McManus and is still discussing whether to release him from his contract.
Mr McManus said he took the festival away from Rotorua due to a lack of numbers and declining profits.
The festival has been held in Rotorua since its inception in 2008 and injected millions of dollars into the local economy.
