Rotala snaps up Worcs bus services operation from rival
BIRMINGHAM-based coach and bus operator Rotala has bought a fleet of vehicles and two depots in Worcestershire from rival FirstGroup for £1.5m.
Rotala has bought two freehold depots, one in Kidderminster and the other in Redditch, 36 vehicles, and various items of plant and equipment.
It will continue to run the services that FirstGroup currently operates from the depots.
The Kidderminster depot comprises a site of some two acres and was purpose built in 2001. It can accommodate up to 60 vehicles. The Redditch depot, built about 35 years ago, has a slightly smaller useable area and can accommodate about 50 vehicles. In the year ended 30 June 2012, these depots reported combined revenues of approximately £5.2m and an operating loss of £0.27m. They employ about 120 staff.
Rotala said in a statement to the Stock Exchange this morning that the acquisition will allow it to expand and consolidate its position in those areas of Worcestershire which are contiguous to its main areas of operation in the Birmingham conurbation.
The firm said the acquisition is not expected to have a material impact on earnings in the current financial year.
“Once the integration of operations and overheads has been fully implemented, the acquisition is expected to have a beneficial effect on earnings in the following years,” it said.
