12th Jul 2016 16:20
LONDON (Alliance News) - Rotala PLC late Tuesday said it has acquired the business, brand and a fleet of six vehicles from Elite Minibus and Coach Services Ltd for GBP200,000 in cash deal that will enhance earnings immediately on completion.
Rotala, an operator of commercial and subsidised bus routes, said the Elite business generates GBP500,000 in revenue per year whilst the vehicle fleet has a value of GBP150,000.
"Elite is a well-established operator of contracted services for local authorities and schools in the Blackpool area," said the company. "Rotala will not assume any other assets or liabilities of any materiality on acquisition. On this basis the acquisition is expected to generate about GBP50,000 of positive goodwill on consolidation."
Elite is an operator of contracted services for local authorities and schools in the Blackpool area and also has a private hire arm. The business will be integrated into the outstation which Rotala already operates in Blackpool through its subsidiary company, Preston Bus Ltd.
"This acquisition will broaden the range of services which Preston Bus is able to offer in this area of Lancashire and add to its geographical reach. The acquisition is expected to be earnings enhancing from completion," said Rotala.
Rotala shares closed down 2.1% to 59.50 pence per share on Tuesday.
By Joshua Warner; [email protected]; @JoshAlliance
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