Transport group goes private with £21m funding deal
A Tividale transport firm has been taken into private ownership with a £21.1m funding package from HSBC.
The group will now delist from the AIM stock exchange using the funding which is a combination of rolled-over equity and financial support from HSBC.
HSBC has also allocated a further £14m to enable the business to operate services for recently acquired franchises in Greater Manchester. Funding will be used to acquire 67 new buses for the Manchester franchises in line with investment plans for the region’s transport network.
Rotala’s plans to go on an acquisition spree that includes bidding for transport franchises in the West Midlands and Greater Manchester to add to its existing network of 500 vehicles.
Simon Dunn, Managing Director at Rotala Group, said: “This move will enable us to focus on long-term growth, with our experienced and dynamic team leading Rotala towards our future growth plans and commitment to developing sustainable revenue streams.”
Andy Oates, Head of Corporate Banking at HSBC UK, added: “I’m pleased that we’ve been able to support Rotala’s management team with this important milestone in its development putting the business in a great place to achieve its full potential as an innovative and growing transport business.”
HSBC UK worked with partners including legal advisory firm Mills and Reeves, with BDO conducting financial due diligence to ensure success of the agreement.
