Rotala buys bus company for £936,000
Bus group Rotala has bought a business in Warwickshire for £936,000.
Rotala, which has its head office in Tividale and runs Diamond Bus, has acquired Henley-based Johnsons’ entire bus business and 20-strong fleet.
Johnsons operates commercial and contracted bus services across Warwickshire and the southern West Midlands.
Following completion, the business, trading at present under the Excelbus brand, will become part of Diamond Bus business operating out of its existing Redditch depot and the buses will be rebranded into Diamond Bus livery.
About 60 employees are expected to transfer to Diamond Bus with the business. Completion is expected on May 29.
Simon Dunn, chief executive of Rotala, said: “In our recently published annual report, we highlighted our belief that the group was very well placed to take advantage of the acquisition opportunities that were likely to arise as commercial reality returned to the bus industry after Covid-19. The Acquisition is an example of such a transaction and we continue to look for others.
“The Acquisition also fits in with a key part of the group’s strategy in seeking to consolidate smaller businesses in our existing areas of operation so that we make better use of our current depot capacity and so spread overheads over a larger business, with a corresponding increase in business efficiency.”
The directors believe that, following completion, the acquisition will generate annual earnings of £200,00
