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Rotala purchases Hansons of Stourbridge

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bussnapperwm

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I don't know if it was mentioned on here but it was announced on both the London Stock Exchange, Diamond Bus and the Hanson's (Stourbridge) website that with effect from July 28, 2017, Rotala have purchased Hanson's (Wordsley) Limited, one of their chief rivals in the Dudley/Stourbridge area, from its owner Margaret Hanson.

As part of the sale, the depot will be closed with services moving to Diamonds Tividale and Kidderminster depots. It is as yet unknown what changes to the routes and fares that hansons operate at the moment will happen under diamond.
 
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freetoview33

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I don't know if it was mentioned on here but it was announced on both the London Stock Exchange, Diamond Bus and the Hanson's (Stourbridge) website that with effect from July 28, 2017, Rotala have purchased Hanson's (Wordsley) Limited, one of their chief rivals in the Dudley/Stourbridge area, from its owner Margaret Hanson.

As part of the sale, the depot will be closed with services moving to Diamonds Tividale and Kidderminster depots. It is as yet unknown what changes to the routes and fares that hansons operate at the moment will happen under diamond.

In comparison to the Wessex operation the Diamond one seems to be doing well.
 

winston270twm

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Full RNS here for anyone interested:
http://otp.investis.com/clients/uk/rotala/rns/regulatory-story.aspx?cid=182&newsid=896656

In addition to the Hanson's acquisition, there will also be an 18 vehicle Manchester based bus business.

Plus at the preliminary negotiation stage are two further acquisitions that 'could' potentially add an additional £17.1 million of revenue to Rotala Plc. These for me are the more interesting ones....

If all the above happen Rotala Plc could be up to a fleet of around 750+ buses & coaches.
 

freetoview33

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Full RNS here for anyone interested:
http://otp.investis.com/clients/uk/rotala/rns/regulatory-story.aspx?cid=182&newsid=896656

In addition to the Hanson's acquisition, there will also be an 18 vehicle Manchester based bus business.

Plus at the preliminary negotiation stage are two further acquisitions that 'could' potentially add an additional £17.1 million of revenue to Rotala Plc. These for me are the more interesting ones....

If all the above happen Rotala Plc could be up to a fleet of around 750+ buses & coaches.

Very interesting! They seem to be flourishing in areas where there is regulation. (West Midlands). And possibly could signal why there may be a move into Manchester.
 

carlberry

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Very interesting! They seem to be flourishing in areas where there is regulation. (West Midlands). And possibly could signal why there may be a move into Manchester.

Since when did the West Midlands get regulated? If an area is regulated you cant move into it, you have to apply (London and Northern Ireland for example).
 

winston270twm

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Very interesting! They seem to be flourishing in areas where there is regulation. (West Midlands). And possibly could signal why there may be a move into Manchester.

They are currently targeting major conurbations to build sizeable operations in both West Midlands & Manchester/NW. They will be in a good position if Bus Franchising is introduced in Manchester or if they end up going down the Bus Alliance/Quality Contracts route will is currently the favoured approach in the West Midlands.

I suspect they will maintain Wessex as is to see what unfolds in Bristol. There are currently better markets elsewhere for Rotala to expand, without getting involved in bus wars with First.
 
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overthewater

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Plus at the preliminary negotiation stage are two further acquisitions that 'could' potentially add an additional £17.1 million of revenue to Rotala Plc. These for me are the more interesting ones....


This is what truly the most important piece of the link. Are the two separate or are there owned by the same company? Where? :lol:
 

winston270twm

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This is what truly the most important piece of the link. Are the two separate or are there owned by the same company? Where? :lol:

The clue's are in the link to the RNS:

Opp A - is Manchester Based
Opp B - Airport based & to be absorbed in to existing Rotala depot
 

adrock1976

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Do I remember right that Diamond Bus in the West Midlands started out as the Birmingham Coach Company back in the late 1980s/early 1990s?

I do remember BCC operating a few routes back then, such as the 217 that ran between West Bromwich and the Merry Hill Centre, and some short workings on the 9 between Birmingham and Halesowen.
 

ag51ruk

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The clue's are in the link to the RNS:

Opp A - is Manchester Based
Opp B - Airport based & to be absorbed in to existing Rotala depot

That would seem to rule out Yourbus, which has a turnover of c £8m and a family connection (one of the Dunn brothers was a director of both Rotala and Yourbus - although I don't think at the same time) but doesn't fit the geography
 
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winston270twm

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Possibles: -
Manchester Airport group M90 1QX
Jim Stones
Go Goodwins

(Frantic denials to follow!)

In addition to the Acquisition and the Proposed Acquisition, the Company is exploring other acquisition opportunities, including a further strategic acquisition in Manchester and an airport based hotel bus business.

Opportunity A

-- A further strategic acquisition in Manchester that could increase Rotala's bus capacity to 200 vehicles, representing approximately 10 per cent. of the local market

-- Cost of acquisition expected to be approximately GBP4.6 million, (financed through equity and debt)

-- Estimated revenue and EBITDA contributions of GBP11.0 million and GBP0.9 million in the first full year following completion of such acquisition

Opportunity B

-- Acquisition of airport based bus business
-- Common customer base with existing business
-- Would use existing spare depot capacity and overhead
-- Cost of acquisition expected to be GBP2.2 million, (financed through equity and debt)
-- Historic sales and EBITDA of GBP6.1 million and GBP0.5 million*

----------------------------------------------------------------------------------------------------------------------------
For me (pure guesswork Only) using the above extracts:

Proposed Acquisition = Go Goodwins (Little Gem Bus Company) - A separate Limited company was only set-up for Little Gem as recently as end of June, legally separating the two.

Opportunity A = Arriva NW (Wythenshawe & Bolton depots). Atherton has an allocation of 60, new proposed acquisition is 18 = 78. 122 vehicle Manchester based bus business required. Rosso to March 2016 had turnover of £9.5 Million & falling unless they've grown turnover 20% to the £11 Million in the past, I think they can be ruled out.

Opportunity B = One description say an 'Airport Based Hotel Bus Business', 1. Rotala has an existing base at Heathrow. 2. Not many Hotel bus businesses around with a £6 Million turnover. Therefore, my monies on NX Hotel Hoppa plus possibly the BA Shuttle work that NX won off Rotala in 2015. NX already sold Airlinks to OFJ last year / c2c this year, so are not afraid to make disposals.

Happy to be proven wrong!
 
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bussnapperwm

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Do I remember right that Diamond Bus in the West Midlands started out as the Birmingham Coach Company back in the late 1980s/early 1990s?

I do remember BCC operating a few routes back then, such as the 217 that ran between West Bromwich and the Merry Hill Centre, and some short workings on the 9 between Birmingham and Halesowen.

Yes they were, then they became Go West Midlands under Oxford Bus company management branded as Diamond, then Rotala brought them in 08 and brought fare deals such as the "Diamond Demon Deal" and a massive West Bromwich network which now only consists of the 4 (404B/Ludlows 417).
 

317 forever

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The other notable independent in Greater Manchester that could interest Rotala would be MCT.

I thought Rotala would want to buy D&G but it seems they are concentrating on Airport services and normal bus services in areas that could introduce franchising.

Given their base at Heathrow through OFJ & Hallmark, itself running local buses, I am surprised that Rotala have evidently not looked into TfL bus work.
 

daodao

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The other notable independent in Greater Manchester that could interest Rotala would be MCT.

I thought Rotala would want to buy D&G but it seems they are concentrating on Airport services and normal bus services in areas that could introduce franchising.

Given their base at Heathrow through OFJ & Hallmark, itself running local buses, I am surprised that Rotala have evidently not looked into TfL bus work.

D&G are at risk of losing a lot of work once the East Cheshire and Staffordshire subsidised bus service reviews have been completed and major cuts implemented.
 

Volvodart

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Possibles: -
Manchester Airport group M90 1QX
Jim Stones
Go Goodwins

(Frantic denials to follow!)

It has been confirmed that it is the contracted bus operations and associated resources of Go Goodwins.
 
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Observer

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Rather surprised they'd sell up after the whole Little Gem rebranding recently...but then again it may have been done for a possible sale eventually.
 

overthewater

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Go Goodwins is a coach company isn't it, Why would there want that? Or have I mist something?
 

Tony4387

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I wonder if the airport business rotala is looking is Manchester airports buses and or national express hotel hoppa business
 

Volvodart

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http://otp.investis.com/clients/uk/rotala/rns/regulatory-story.aspx?cid=182&newsid=940361
Acquisition
Released : 17/10/2017 14:30

RNS Number : 8493T
Rotala PLC
17 October 2017

("Rotala" or "the Company" or "the Group")

Further re Fund Raising and Acquisitions

Further to its announcement on 28 July 2017 regarding a Placing and Subscription to raise £3.5 million (before expenses) to fund acquisitions, Rotala announces that it has now entered into a conditional agreement to acquire a business and certain assets from National Express Limited ("National Express"), being one of the acquisition opportunities previously described.

Pursuant to the terms of a business purchase agreement ("BPA"), Rotala has agreed to acquire the Hotel Hoppa business from National Express. This business comprises a passenger transport service between Heathrow Airport (all terminals) and hotels within a five mile radius of Heathrow Central Bus Station, delivered under contracts with those hotels and other airline customers. The acquisition includes the right to use the business name, the goodwill of the business and the novation of the underlying contracts, together with the fleet of 32 buses. The consideration of £2 million will be payable in full on completion of the BPA from the Company's existing cash resources.

The Directors believe that the Hotel Hoppa acquisition will enable Rotala to strengthen significantly its operations in the Heathrow area. Many of the airline customers of the Hotel Hoppa business are already users of various airside and landside services provided to them by Rotala in and around the airport. No additional overheads are expected to be required as a result of the acquisition since the acquired business will utilise spare capacity in the existing Rotala depots on the southern side of Heathrow Airport. The Directors believe that the Company will benefit, in the first full year following completion of the acquisition, from additional sales, EBITDA and profit before tax contributions of approximately £6.0 million, £0.5 million and £0.2 million respectively.
Completion of the BPA is expected to occur towards the end of November 2017, following compliance by National Express with its obligations under the Transfer of Undertakings (Protection of Employment) Regulations 2006, and by no later than 31 December 2017, following satisfaction or waiver of the conditions.

Unless otherwise defined, capitalised terms in this announcement shall have the same meaning as those within the 'Definitions' section of the Company's RNS released on 28 July 2017.[/QOUTE]
 
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