Share placing to support transport group’s acquisition plans

Transport group Rotala has raised £1m in a share placing to support its acquisition plans.

The Tividale-based bus and coach business agreed a £5.3m deal last month to buy a depot in Bolton and most of the business that had been run by First Manchester from that site.

Rotala is continuing to seek other acquisitions, which are being generated by changes to the UK bus market.

The company runs chartered and scheduled bus and coach services in the North West, South West, Midlands and Greater London.

Previously it has funded acquisitions mainly through hire purchase and other debt financing but Rotala’s directors want to deleverage the business over time by paying down existing debt.

The fundraising announced today has been backed by the board, with six directors committing a total of £470,000.