The West Midlands-based group has increased its footprint following the take-over of Uttoxeter independent Midland Classic, with 60 vehicles and 110 staff
Rotala has acquired Burton-upon-Trent-based Midland Classic for the sum of £2 million, plus the amount of approximately £577,000 in cash to one of Midland Classic’s shareholders to repay an existing loan of that amount.
Midland Classic operates 60 vehicles and employs approximately 110 staff. It is one of the principal bus operators in Burton-upon-Trent, from where it provides bus services to other nearby towns including Uttoxeter, Ashby-de-la-Zouch and Lichfield. The acquisition represents an extension of Rotala’s business to new territory in the East Midlands, from which it says further growth will be targeted. The operation will be renamed Diamond Bus (East Midlands) Limited and will be part of Rotala’s Midlands division. It will be controlled from the company’s headquarters at Tividale, Oldbury.
In the year to 31 July 2021, the most recent financial year for which figures are available, Midland Classic had unaudited revenues of approximately £5.6 million and a profit before tax of £2,000. Figures for the previous year were £5.2 million and £621,000 respectively. Following the sale, Rotala has acquired the vehicle fleet.
As with the other acquisitions which Rotala has made recently, Midland Classic will adopt the Group’s centralised IT systems covering accounting, purchasing, stock control and payroll. Rotala believes that the purchase will have a beneficial effect on its future earnings.
Simon Dunn, Chief Executive of Rotala, commented: “Midland Classic is a sizeable well-established business in an attractive bus territory. It represents the entry by Rotala into the East Midlands which is a new market for the Group. However, at the same time, geographically it is adjacent to our existing operations in the West Midlands and so easily managed from there. The business also has its own freehold depot from which we will look to further expand Rotala’s services as the recovery in passenger numbers post-covid continues.”
