Tutt Bryant Group Limited (ASX: TBG) is pleased to announce the acquisition of Queensland based equipment hire company North Sheridan Pty Ltd, trading as Paramount Hire Services and Pump Hire Services, for a cash consideration of $31.7 million and assumption of approximately $19.0 million in finance liabilities as at 30 September 2006.

Managing Director of the Tutt Bryant Group, David Haynes said 'This acquisition is a very strong complementary addition to our EQ Hire business and provides a platform for further expansion either by organic growth or single store acquisitions to create stronger utilisation of equipment between stores. Following the acquisition, Tutt Bryant will have 14 hire stores, providing the catalyst to build the number of stores to achieve our target of 20 stores in the first 24 months since listing'.

Paramount Hire Services provides the dry hire (without operator) of equipment to local government, construction industry, military, main roads, mining, industrial companies, the public, agriculture, tourism, ports and processing plants. Equipment hire is not focused to one specific market or industry, it is very well distributed throughout a diverse customer base not relying on any one customer or hot spot industry.

Pump Hire Services provides pumping systems and water management solutions including niche market special services for environmental, pollution and all types of liquid applications which includes sludge, dewatering of land, tunnels and trenches.

The business has been operating as a family business since 1977 and has six general hire and three pump hire operations located in central and north Queensland at Cairns, Townsville, Mackay and Gladstone. In addition one of these branches has a secure inside the gate contract with BHP at Queensland Nickel processing plant at Yabulu. Both trading divisions have in excess of 5000 items in their hire stock comprising modern up to date and well maintained equipment.

Revenues for the year to 30 June 2006 were $20.3 million with EBITDA for the same period of $8.9 million. The company expects significant growth in earnings in 2007 given the large capital expenditure in Paramount over the last few years.

The acquisition is expected to be earnings per share accretive from the full financial year 2008.All staff will be retained and it is intended to continue trading under the names of Paramount Hire Services and Pump Hire Services. The transaction will initially be funded by bank debt. Tutt Bryant intends raising $40 -50 million by way of a renounceable rights issue in the first quarter of the 2007 calendar year to refinance the acquisition, reduce its gearing levels and provide working capital for further growth.

The acquisition will be completed on 12 December 2006 and effective from 1 December 2006.