The Gap Partnership

Bus operator plans more acquisitions

A Birmingham-based bus operator is set to make new acquisitions after securing bank funding.

05 December 2012

Transport firm Rotala may be keeping merger and acquisition consultants busy after securing £11 million of new finance from the Royal Bank of Scotland for its growth plans.

While some of this increase will be organic, the Birmingham-based firm also intends to take over other operations to add to its network of six depots in the West Midlands, north west, south west and Heathrow, the Business Desk reports.

Chief executive Simon Dunn commented: "The agreed suite of increased and flexible facilities will help us to deliver on our short and medium-term strategic objectives, as well as allowing us to respond quickly to future opportunities."

Existing lines owned and operated by Rotala include Diamond Bus, Wessex Bus, Flights Hallmark and Preston Bus.

One bus operator that has been busy making acquisitions of smaller firms is Perth-based Stagecoach.

Its subsidiary Glenvale Transport agreed a £4.5 million deal to buy the assets of First Group in Merseyside, Cheshire and North Wales, taking on services centred on Birkenhead, Chester and Wrexham, as well as 290 staff.

Other recent takeovers by Stagecoach include north Manchester firm Bluebird and Wigan-based First Manchester, for £5 million and £12 million respectively.

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