Coach operator Rotala boosts Heathrow business with £1.3m acquisition

BIRMINGHAM-based bus and coach operator Rotala has strengthened its operations around Heathrow Airport with a £1.3m vehicle fleet acquisition.

The deal has seen Rotala purchase the section of OFJ Connections’ business that operates in and around the airport.

Rotala has acquired a vehicle fleet, valued at £0.65m, but has not assumed any other assets or liabilities of the business. On this basis, Rotala said the acquisition was likely to generate about £0.65m of positive goodwill on consolidation.

The acquisition is estimated to have revenues of approximately £5.5m and is not initially expected to make a material contribution to the profits of Rotala. The acquisition will, over time, be fully integrated with Rotala’s existing business in the Heathrow area.    
 
The business acquired has a long-established presence in and around Heathrow. Its principal activity is the movement of crew for a large number of airlines from their aircraft to their hotels and other destinations, including Gatwick Airport.

Other work is carried out for local educational institutions and for a number of private clients.

The acquisition uses a 70-strong fleet of vehicles matched to the characteristics of this work. These vehicles, with key operating management and about 120 staff, will become part of Rotala’s existing business structure at Heathrow Airport.  

It will not have a material impact on earnings in the 2015/16 financial year and the integration of operations and overheads is expected to have been fully implemented by the end of that year.

Following integration, the acquisition is expected to have a beneficial effect on earnings in future years.