Rotala PLC Acquisition (8493T)
October 17 2017 - 9:30AM
UK Regulatory
TIDMROL
RNS Number : 8493T
Rotala PLC
17 October 2017
RNS
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulation (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
17 October 2017
Rotala Plc
("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 GBP3.5 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 GBP2 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 GBP6.0 million, GBP0.5 million and GBP0.2 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.
Rotala Plc 0121 322 2222
John Gunn, Chairman
Simon Dunn, Chief Executive
Kim Taylor, Group Finance Director
Nominated Adviser & Joint Broker:
Cenkos Securities plc 020 7397 8900
Stephen Keys/Mark Connelly/Callum Davidson (Corporate Finance)
Michael Johnson/Julian Morse (Corporate Broking)
Joint Broker: Dowgate Capital Stockbrokers Ltd 0203 903 7715
David Poutney/James Serjeant (Corporate Broking)
This information is provided by RNS
The company news service from the London Stock Exchange
END
ACQUBUORBSARAAA
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