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Rotala Share Price Index
12th August 2022 @ 04:05 pm GMT
36.00 GBX
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GB00B1Z2MP60
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GBX 36.00
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GBX 0.50 (1.41%)
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34.70 / 36.00 / 34.70
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Rotala Plc Acquires Midland Classic Limited

Rotala Plc Acquires Midland Classic Limited and extends services into the East Midlands

Rotala Plc is pleased to announce the acquisition of Midland Classic Limited ("Midland"), the principal bus operator in Burton-upon-Trent. 

Midland operates 60 vehicles from its freehold depot in Burton-upon-Trent and employs approximately 110 staff, who will join the Rotala Group as part of the acquisition. It is the principal bus operator in Burton-upon-Trent, from where it provides bus services to other nearby towns such as Uttoxeter, Ashby-de-la-Zouch and Lichfield. 

This latest move represents an extension of the Group's business to a new territory in the East Midlands from which further growth will be targeted. Midland Classic will be renamed Diamond Bus (East Midlands) Limited and will become part of Rotala's Midlands division which is controlled from the Group's headquarters at Tividale, Oldbury.

As with the other acquisitions which the Group has made recently, Midland will adopt the Group's centralised IT systems covering such matters as accounting, purchasing, stock control and payroll. These integration steps are expected to have been fully implemented by 30 November 2022. The Directors believe that, following these steps and the continuing slow, but steady recovery in bus passenger numbers throughout England, the acquisition will have a beneficial effect on the Group's future.

Simon Dunn, Chief Executive of Rotala, commented: "Midland Classic is a sizeable well-established business in an attractive bus territory. It represents the entry by Rotala into the East Midlands which is a new market for the Group. However, at the same time, geographically it is adjacent to our existing operations in the West Midlands and so easily managed from there. The business also has its own freehold depot from which we will look to further expand Rotala's services as the recovery in passenger numbers post-COVID continues."  

James Boddice, Managing Director and majority shareholder of Midland Classic, said "After 17 years of successful independent bus operation during which time the company has grown, including taking over the Arriva local garage in 2016, to become the primary operator in and around Burton upon Trent, after much consideration we have decided to accept an offer from Rotala PLC to take over the business. I'd like to thank everyone who has contributed to the success of the company, especially our employees, and wish everyone well for the future."