First Manchester

[mikemcniven]

RE: First Manchester
BOLTON SOLD TO ROTALA

https://www.firstgroup.com/greater-manch...ell-bolton

Quote:First Bus has today announced its intention to sell the Bolton bus depot and operations to Rotala PLC.

The intended sale would include the Bolton depot site, with 18 bus services transferring across to Rotala. The sale is expected to complete in the next few months and more than 500 employees who work for the Bolton bus operation will transfer to Rotala.

First Manchester will continue to operate existing local bus services from the Bolton site until the sale is completed and customers should see no changes to their daily journeys throughout this period of transition. Going forward, First Manchester will focus its attention on the remaining bus services that primarily operate from the Oldham bus depot. Vantage services will also continue to be operated by First Manchester.

Following a review of its Manchester operations completed last year, First Bus took the decision to reduce exposure in Greater Manchester due to the current uncertainties in that particular market. Today’s news also follows the recent sale of First Manchester’s Queens Road depot.

Speaking about today’s announcement, Giles Fearnley, Managing Director of First Bus, said: “I’d like to thank our employees for their continued hard work to deliver the best experience possible for our customers in Greater Manchester. Today’s announcement does not reflect on the effort, commitment or individual performance of our Bolton employees and we will be supporting them fully as they transfer to their new employer.”

For more information, visit http://www.firstmanchester.com

Rotala statement to the Stock Exchange

Quote:Transaction highlights:

· Acquisition of Bolton depot and associated business, capable of operating up to 200 vehicles and serving 18 commercial bus routes

· Acquisition will make Rotala the second largest player in the Manchester bus market, one of the largest bus markets in the country

· Bolton depot will become the headquarters of the Rotala Group in the North West

· Rotala to lease 125 vehicles from First initially to service the new routes, with vehicles being replaced progressively by the Group in the next two years, leading to lower maintenance costs and fuel efficiencies

· Acquisition to be financed in cash from existing debt facilities

· Capital expenditure on bus replacement and re-equipment can be financed using the Group's existing panel of providers of hire purchase finance facilities

· Acquisition expected to be earnings enhancing in the first full year following completion and will significantly increase the scale of the business

· Completion of the Acquisition is expected to occur in August 2019 following receipt of necessary regulatory permissions



John Gunn, Chairman of Rotala, commented:

"This acquisition represents an exciting opportunity to expand significantly Rotala's presence in the Greater Manchester bus market. The deal is an indicator of how the UK bus landscape is beginning to change. We can expect more divestment by the big bus groups in future years. Rotala aims to be a major player in these market developments in years to come."