Coach operator makes second acquisition in a month
COACH operator Rotala has bought a Wigan-based operator for £213,000 as part of its ongoing strategy to bolt-on acquisitions and strengthen its market presence.
Rotala has bought Wigan Coachways, including its eight-strong vehicle fleet, to broaden the range of services it can offer across Lancashire and add to its geographical reach.
The company’s annual revenues stand at around £500,000, with a fleet value of £58,000, and Rotala has said that it expects the acquisition to generate about £150,000 of positive goodwill on consolidation.
Rotala will integrate the business and staff of Wigan Coachways into Rotala’s existing depot in Atherton, Greater Manchester.
It is Rotala’s second Lancashire deal within the past month, following its acquisition of Fylde-based Elite Minibus and Coach Services for £200,000.
“Like Elite, Wigan Coachways is a well-established operator of contracted services for local authorities and engages in some private hire operations,” the company said in a stock market statement.
In June Rotala raised £2.4m in a share placing to fund bolt-on acquisitions as well as investments in the facilities at two West Midlands depots.
The Birmingham-based company received support from new and existing shareholders in the belief the company will be able to support “up to £85m” in revenue. In the last two years annual turnover has been just above £50m.
