Sandwell-headquartered transport company Rotala Plc has purchased one of its competitors in the West Midlands and is in talks to acquire a Manchester operator in a move to strengthen its presence further in some of the country’s major conurbations.
Rotala Plc of Tipton Road, Tividale operates commercial and subsidised bus routes for businesses, local authorities, the public and private individuals. The company was formed in 2005 and has grown year on year through the acquisition and amalgamation of local coach and bus operations into its group.
It is now one of the largest bus operators in its chosen geographical locations, operating more than 600 vehicles and employing more than 1,500 members of staff. One of its subsidiary companies, Diamond Bus Ltd, was listed as the fastest growing business in Sandwell in our Top 50 Fastest Growing Companies Index 2017 with a 43.8 per cent growth in annual turnover.
Diamond Bus provides bus services in the West Midlands and Worcestershire areas, operating from three depots in Tividale, Redditch and Kidderminster. The growth it achieved was through restructuring the business, including relocating its group head office and Diamond Bus West Midlands operations to its existing operational depot in Tividale.
Rotala is now spending around £1m on the acquisition of Stourbridge firm Hansons and is planning on spending the same amount on a Manchester firm that it is currently in talks with.
The Manchester acquisition would bring with it a freehold site and 18 buses. The Hansons acquisition includes a fleet of 25 buses operating across the Black Country, which Rotala will move over to two of its existing depots in Tividale and Kidderminster.
Rotala is forecasting a £400,000 contribution to its earnings from Hansons once it has been integrated and its existing depot has been sold. The move should secure Rotala as the second largest bus operator in the West Midlands.
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