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Rotala Acquires Bus Business from Johnsons.

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Vincent

MANews-(C)2009-2022

UK-based transport solutions provider Rotala plc (AIM: ROL) has agreed to acquire UK-based transport firm Johnsons (Henley) Ltd's entire bus business and 20-strong fleet, for a cash consideration of GBP 936,000 (USD 1.176m) payable on completion, the company said.

The business being acquired is a well-established operator of commercial and contracted bus services in Warwickshire and the southern West Midlands.

The acquisition is expected to be earnings enhancing from completion.

Rotala estimates that the assets being acquired have annual revenues of approximately GBP 3.5m and that the vehicle fleet has a fair value which approximates to the cash consideration being paid.

Rotala will not assume any other assets or liabilities of any materiality on acquisition. On this basis, the acquisition is not expected to generate any goodwill.

The directors believe that, following completion, the acquisition will generate EBITDA of approximately GBP 200,000 per annum for the group. No additional overheads are expected to be required as a result of the acquisition.

Following completion, the business, trading at present under the "Excelbus" brand, will be subsumed into the company's...

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