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A Black Country transport business has been taken into private ownership following a management buyout.

Rotala Group has delisted from the AIM stock exchange following a buyout deal led by chief executive Simon Dunn, his father and executive director Bob Dunn and non-executive chairman John Gunn.

The Tividale-based company said its plans following the deal involved both organic growth and acquisitions and bidding for transport franchises in the West Midlands and Greater Manchester.

Rotala was founded in 2005 and now operates more than 500 vehicles and employs 1,500 members of staff, running corporate transport contracts, private bus networks and public bus services including Diamond Bus in the West Midlands.

Simon Dunn said: "This move will enable us to focus on long-term growth, with our experienced and dynamic team leading Rotala towards our future growth plans and commitment to developing sustainable revenue streams."

The MBO was carried out through a combination of rolled over equity from key management and investors and a £2.1 million funding package from HSBC º£½ÇÊÓƵ.

The Birmingham-headquartered bank has also allocated a further £14 million facility to enable the business to operate services for recently acquired franchises in Greater Manchester.

Rotala said it planned to use this funding to buy 67 new buses for these acquisitions, in line with their investment plans for the region's transport network.

Andy Oates, head of corporate banking at HSBC º£½ÇÊÓƵ, added: "I'm pleased that we've been able to support Rotala's management team with this important milestone in its development, putting the business in a great place to achieve its full potential as an innovative and growing transport business."

Advisers on the deal were Mills and Reeves and BDO.