Rotala buys South Lancs Travel

Rotala buys South Lancs Travel

Birmingham based transport company, Rotala acquired the entire share capital of Green Triangle Buses Limited for a cash consideration of £900,000 from Rolling Solutions Limited and Mr Julian Peddle earlier this week.

The acquisition will enable the company to enhance its position in the Lancashire market and give it access for the first time to the Greater Manchester area which falls under the remit of Transport for Greater Manchester.

South Lancs Travel has been running buses in and around Atherton since 1998, they operate 43 vehicles from a long leasehold depot in Atherton and currently employs around 100 staff.

At the date of acquisition, GTB had net assets of some £466,000 including hire purchase debt of £233,000. In the year ended August 31 2014, GTB had revenues of approximately £3.9m and a profit before tax and exceptional items of £107,000. Rotala also repaid approximately £368,000 to Green Triangle Buses’ bankers to settle an outstanding overdraft. On this basis, the acquisition is expected to generate about £450,000 of positive goodwill.

Rotala said: “The depot is well placed within the local transport network and capable of handling the expansion needs to be envisaged for GTB at the current time. The acquisition will enable the company to enhance its position in the Lancashire market and give it access for the first time to the Greater Manchester area which falls under the remit of Transport for Greater Manchester.”

In the year ended 31st August 2014, GTB had revenues of approximately £3.9m and a profit before tax and exceptional items of £107,000. On this basis, the acquisition is expected to generate about £450,000 of positive goodwill.

Operationally Green Triangle Buses Limited which will be renamed Diamond Bus (North West) Limited in due course will be part of the North West division of Rotala, with its existing hub in Preston headed by Bob Dunn as Managing Director. Prior to completion, four new Enviro200s were transferred from Atherton to D&G at Crewe, with three older Scania’s going the other way.

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Tom Harrison
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