Tutt Bryant Group (ASX: TBG) is pleased to announce the acquisition of Muswellbrook Crane Services Pty Ltd ("Muswellbrook Cranes"), for a cash consideration of $17.8 million. The acqisition includes the assumption of approximately $2.9 million in finance liabilities.

Muswellbrook Cranes is a family owned business that was established in 1972 and now has approximately 80 employees operating from two sites. It services a niche market providing cranes and access equipment and heavy haulage services to local industry and the mining industry in the Hunter Valley.

The crane hire fleet consists of 24 cranes primarily rented on a wet hire (with operator) basis. In addition, Muswellbrook Cranes has 12 heavy haulage prime movers and a fleet of low loaders and flatbed trailers. It also provides travel towers and work platforms.

All senior management and staff will continue to work in the business in their current roles.

The rationale for the acquisition of Muswellbrook Cranes is:

• the acquisition will assist Tutt Bryant Group to maximise utilisation of its crane and haulage fleet
• there are growth opportunities for Muswellbrook Cranes through utilisation of Tutt Bryant dry hire crawler cranes, access equipment, trucks and the introduction of a wide range of generators, air compressors, lighting towers, pumps, shut down and maintenance equipment from the EQ and Paramount Hire divisions; and
• Muswellbrook Cranes has a niche market wet hire business in the Hunter Valley region

 

Tutt Bryant Group intends to maintain that strategy and increase the range of products and services that are currently offered.

Managing Director of Tutt Bryant Group, David Haynes said "This is an exciting acquisition for the group. It provides a platform for significant future growth. Muswellbrook Cranes is a very well respected business in the region and the Hunter Valley is an area of high activity enabling Tutt Bryant Group to grow the existing business by introducing the group's services and equipment."

Muswellbrooks Cranes' unaudited management accounts for the year ended 30 June 2006 disclose revenues of $13.6 million and EBITDA of $3.8 million. Earnings for Muswellbrook Cranes going forward are expected to increase significantly.

The acquisition is scheduled for completion of 20 February 2007.