Rotala has acquired the entire business, brand and six strong vehicle fleet of Elite Minibus and Coach Services Ltd for a cash consideration of £200,000. Rotala estimates that the Elite business has annual revenues of approximately £500,000 and that its vehicle fleet has a fair value of approximately £150,000. The acquisition is expected to generate about £50,000 of positive goodwill on consolidation.
Rotala describes Elite as a well established operator of contracted services for local authorities and schools in the Blackpool area, saying it also has a successful private hire arm. This business, with its small number of existing staff, will be integrated into the outstation that Rotala already operates in Blackpool through its subsidiary company, Preston Bus Ltd. The takeover is expected to broaden the range of services Preston Bus is able to offer in this area of Lancashire and add to its geographical reach. The deal is expected to be earnings enhancing from completion.