Coach company completes £1m acquisition deal

Rotala

Bus and coach company Rotala has completed the £1m acquisition of a Manchester bus and minibus business.

The West Midlands company reached an agreement last month to acquire Go Goodwins, which operates 18 buses and a freehold property in the Manchester area. It also benefits from bus service contracts with Transport for Greater Manchester.

While the initial assets will be dealt with in terms of a cash payment of £692,000, the total expected cost is estimated at £1m, including the necessary working capital and capital expenditure associated with the deal.

Tividale-based Rotala said it believed the Goodwins acquisition would enable Rotala to significantly grow its operations in the Manchester area and potentially double its bus capacity.

The company’s board of directors said the enlarged business would benefit from additional sales, gross profit and EBITDA contributions of approximately £2m, £0.4m and £0.2m respectively in the first full year of ownership.

The deal is being funded from the proceeds of a £3.5m share placing and subscription announced by Rotala in July.

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