Key acquisition gives Rotala new Wings
BIRMINGHAM-based bus and coach operator, Rotala has strengthened its operations in London with a key acquisition.
The company, which already operates Flights coaches, has taken on Wings Luxury Travel in a deal worth £1.5m.
Rotala said Wings is a well-established operator of luxury coach services in the London area with a strong business reputation. It uses a 17-strong fleet of highly-specified vehicles. These, with key operating management and about 20 staff will transfer to Rotala’s existing depot at Heathrow Airport.
Rotala said the recent end of its long-standing contract with British Airways meant there was ample capacity at the depot to absorb the Wings fleet and personnel.
The Wings vehicle fleet is estimated to be worth £1.1m and Rotala said it would not assume any other assets or liabilities of any materiality. On this basis the acquisition is expected to generate about £0.4m of positive goodwill on consolidation.
In the year ended November 30, 2014, the Wings business had revenues of approximately £1.9m with a pre-tax profit before exceptional items of £90,000.
“The acquisition will not 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 year. Following these steps, the acquisition is expected to have a beneficial effect on earnings in future years,” said Rotala in a statement.
