Bus company makes new acquisition
Birmingham-based bus firm Rotala has made the first acquisition with its new increased business lending fund.
Bus company Rotala has made the first acquisition in what may be a series of many after securing a new £11 million lending facility with its principal bankers.
The Birmingham-based company has agreed a £1.8 million deal to buy the Bristol depot currently leased by the firm, after concluding negotiations with Silverton Investments for the facility in the Avonmouth area of the city.
Rotala's new £11 million facility replaces a prior arrangement where it could draw on up to £5.2 million.
The fund may ensure the company makes frequent use of the services of merger and acquisition consultants in the near future.
Rotala is not alone in making new acquisitions in the bus industry, with Perth-based Stagecoach having recently taken over smaller competitors in the north-west of England.
The company and its subsidiaries have bought up firms like First Group's Merseyside, Cheshire and north Wales operations, as well as Middleton-based Bluebird and Wigan-based First Manchester, with these purchases costing a combined £21.5 million.