MANCHESTER: Rotala Plc has agreed to acquire from First Manchester Limited, its Bolton depot and the majority of the First business located at that depot. The total consideration for the acquisition is £5.3 million, payable in cash, which shall be satisfied from the company’s existing bank facilities.
First Manchester Limited is a subsidiary of FirstGroup plc.
Acquisition of Bolton depot and associated business, capable of operating up to 200 vehicles and serving 18 commercial bus routes. Acquisition will make Rotala the second largest player in the Manchester bus market, one of the largest bus markets in the country.
Rotala would lease 125 vehicles from First initially to service the new routes, with vehicles being replaced progressively by the Group in the next two years, leading to lower maintenance costs and fuel efficiencies
Completion of the acquisition is expected to occur in August 2019 following receipt of necessary regulatory permissions.
John Gunn, Chairman of Rotala, commented: “This acquisition represents an exciting opportunity to expand significantly Rotala’s presence in the Greater Manchester bus market. The deal is an indicator of how the UK bus landscape is beginning to change. We can expect more divestment by the big bus groups in future years. Rotala aims to be a major player in these market developments in years to come.”