Rotala has completed its acquisition of the bus operations of Go Goodwins (Coaches) Ltd.
The company has agreed to acquire 18 buses and a freehold property in the Manchester area, together with goodwill and the benefit of TfGM bus service contracts, for a cash consideration of £692,500. Rotala said the total expected cost of the Goodwins Acquisition is approximately £1m, including the necessary working capital and capital expenditure associated with the acquisition.
Rotala said the Goodwins Acquisition will enable the company to significantly grow its operations in the Manchester area and potentially double its bus capacity. It said no additional overheads are expected to be required as a result of the acquisition and the directors believe that the company will benefit from additional sales, gross profit and EBITDA contributions of approximately £2m, £0.4m and £0.2m respectively in the first full year following the acquisition.
Rotala announced that the acquisition had been formally completed on September 1.