Rotala acquires Wings
Rotala has acquired Wings Luxury Travel Ltd for a cash consideration of £1.5m. The deal includes the Wings brand and complete vehicle fleet. The vehicles have a fair value of £1.1m. Rotala will not assume any other assets or liabilities of any materiality. On this basis the acquisition is expected to generate about £0.4m of positive goodwill on consolidation. In the year ended 30 November 2014, the Wings business had revenues of approximately £1.9m and a profit before tax and exceptional items of £90,000.
Wings operates luxury coach services in the London area. A Rotala statement said it had an ‘excellent business reputation’. It uses a 17 strong fleet of highly specified vehicles. These, with key operating management and about 20 staff, will transfer to Rotala’s existing depot at Heathrow Airport. Following the recent end of the company’s long standing contract with British Airways, Rotala says there is ‘ample capacity’ at this depot to absorb the Wings fleet and personnel.
The acquisition was said to not have a material impact on earnings in the current financial year. The integration of operations and overheads is expected to have been fully implemented by the end of the year. Following these steps, the deal is expected to have a beneficial effect on earnings in future years.