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Rotala acquires rival bus group in £2m deal
AIM-listed transport group Rotala has snapped up Central Buses for £1.95m, the latest in a string of acquisitions.
Rotala said it had acquired Central Buses, which has a 31-strong fleet and operates commercial and contracted bus services in the West Midlands, through its existing debt facilities.
The deal is expected to contribute an additional £450,000 of earnings before interest, tax, depreciation and amortisation in the full year.
The acquisition is Rotala's fourth deal in less than a year. The others included buying Hansons, an independent bus operator; a bus firm based in Eccles, Manchester; and the Hotel Hoppa business in and around Heathrow airport from National Express.
The company also hinted at more deals to come.
In a statement, it said: "Following the four acquisitions which have been made since July 2017, the group's turnover in the 2018 full year is expected to grow considerably.
"The Bus Services Act 2017 will continue to create uncertainty and drive change in the bus industry. Accordingly, the board remains focused on identifying suitable acquisitions which will enhance and expand the services of the group. At the same time, the group posses ample financial facilities to undertake further acquisitions."
Updating on trading ahead of the full-year results, Rotala said it had "performed well" in 12 months to 30 November 2017, and was now "well placed" to take advantage of continuing developments in the bus industry.