Rotala PLC Further re. Fund Raise and Acquisitions (0206P)
25 August 2017 - 7:55PM
UK Regulatory
TIDMROL
RNS Number : 0206P
Rotala PLC
25 August 2017
RNS
25 August 2017
Rotala Plc
("Rotala" or the "Company" or the "Group")
Further re. Fund Raise 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 in respect of the Proposed Acquisition, being
the acquisition by the Company of certain assets from Go Goodwins
(Coaches) Limited (the "Goodwins Acquisition").
Pursuant to the terms of a business purchase agreement ("BPA")
Rotala has agreed to acquire a bus and minibus services business
which comprises 18 buses and a freehold property in the Manchester
area, together with goodwill and the benefit of TfGM bus service
contracts, for a cash consideration of GBP692,500 payable in full
on completion of the BPA. The total expected cost of the Goodwins
Acquisition is approximately GBP1 million, including the necessary
working capital and capital expenditure associated with the
acquisition, which will be satisfied from the net proceeds of the
Subscription.
The Directors believe that the Goodwins Acquisition will enable
Rotala to significantly grow its operations in the Manchester area
and potentially double its bus capacity. No additional overheads
are expected to be required as a result of the acquisition and the
Directors believe that the Company will benefit from additional
sales, gross profit and EBITDA contributions of approximately
GBP2.0 million, GBP0.4 million and GBP0.2 million respectively
under Rotala's ownership, in the first full year following
completion of the Proposed Acquisition.
Completion of the BPA is expected to occur on 31 August 2017,
following compliance by the target company with its obligations
under the Transfer of Undertakings (Protection of Employment)
Regulations 2006.
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/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
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