Bus company drives major expansion with £5.3m acquisition

Rotala

Tividale-based bus and coach business Rotala has expanded its operation with £5.3m acquisition of a depot in the North West.

Rotala has agreed to acquire from First Manchester, a subsidiary of FirstGroup, its Bolton depot and the majority of the First business located at the site.

The company said the depot and associated business is capable of operating up to 200 vehicles and serving 18 commercial bus routes and will make Rotala the second largest player in the Manchester bus market, one of the largest bus markets in the country.

It said it will lease 125 vehicles from First initially to service the new routes, with vehicles being replaced progressively by the group in the next two years, leading to  lower maintenance costs and fuel  efficiencies.

The acquisition, to complete in August, is expected to be earnings enhancing in the first full year following completion and will “significantly increase the scale of the business”, the company said.

John Gunn, Chairman of Rotala, said: “This acquisition represents an exciting opportunity to expand significantly Rotala’s presence in the Greater Manchester bus market.

“The deal is an indicator of how the UK bus landscape is beginning to change. We can expect more divestment by the big bus groups in future years. Rotala aims to be a major player in these market developments in years to come.”

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