Transport group geared for growth after acquisition

THE acquisition of a Lancashire bus company will significantly aid the expansion of a Birmingham transport group, the firm has said.

Flights Coaches operator Rotala has invested £3.2m in the acquisition of Preston Bus Company from rival group Stagecoach.

In a statement, Rotala said: “The acquisition of PBL provides Rotala with a significant expansion of its activities into a new geographical area.”

Despite its location outside of Rotala’s principal operating area, the company said this would present no problem with the integration of the firm as it was only the same distance from Birmingham as another of its businesses near Bristol.

“The board is confident the existing management and operations of PBL can be quickly integrated within the group’s existing structure,” added the statement.

“PBL will operate just like any current depot in the group network, with all central administrative and support services provided by the Birmingham headquarters of the group. Preston sits in a region which has a historically high level of bus usage. In addition plans have recently been announced to build a major new shopping centre in Preston; a requirement for a new bus station was outlined some time before the announcement of the new shopping centre and thus the need has become more pressing.

“These improvements will add considerably to the attractiveness of Preston as a place to live and work, and are expected to create more bus passenger journeys. The board of Rotala therefore regards the future development of the Preston hub with optimism.”
 
John Gunn, Rotala chairman, said the acquisition represented an exciting new phase in the development of the Rotala group.

“The extension of our network up the M6 to Preston will bring us a presence in a wholly new area of operation where the development potential is considerable. I am confident that this acquisition will much enlarge the activities of the company and deliver further increases in shareholder value in due course,” he said.

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