Rotala motors on with North West bus group acquisition

TRANSPORT company Rotala has bought Manchester-based Green Triangle Buses (GTB) for £900,000.

Aston, Birmingham-based Rotala has also repaid approximately £368,000 to GTB’s bankers to settle its outstanding overdraft.

Rotala bought GTB from Rolling Solutions and Julian Peddle.

At the date of acquisition GTB had net assets of some £466,000 including hire purchase debt of £233,000. In the year ended 31st August 2014, GTB had revenues of approximately £3.9m and a profit before tax and exceptional items of £107,000.

On this basis the acquisition is expected to generate about £450,000 of positive goodwill.
 
GTB operates 43 vehicles from a long leasehold depot in Atherton, Manchester and employs about 100 staff.

Rotala says the acquisition will enable the company to enhance its position in the Lancashire market and give it access for the first time to the Greater Manchester area which falls under the remit of Transport for Greater Manchester.

GTB will be renamed Diamond Bus (North West) in due course and will be part of the North West division of Rotala, with its existing hub in Preston headed by Bob Dunn as managing director.
 
Rotala says the acquisition is not expected to have a material impact on earnings in the current financial year.

“The integration of operations and overheads is expected to have been fully implemented by the end of the current financial year,” it said.

“Following these steps, the acquisition is expected to have a beneficial effect on earnings in future years.”