As well as cranes, Muswellbrook has 12 heavy haulage prime movers and a fleet of low loaders and flatbed trailers. It also provides travel towers and work platforms.
Tutt Bryant said that the deal will allow it to maximise utilisation of its crane and haulage fleet. Access to Tutt Bryant’s fleet of crawler cranes, access equipment, trucks, and other equipment, will offer growth opportunities to Muswellbrook. Muswellbrook Cranes has a niche strategy focussing on hire of cranes with operators in the area; Tutt Bryant says it will aim to retain that focus, but increase the range of products and services on offer.
The deal is to be funded through a two-for-five renounceable rights issue to Tutt Bryant shareholders, underwritten by ABN AMRO Morgans Corporate. The issue will be priced at AUD1.34 a share, intended to raise gross proceeds of AUD49.7m (USD39.2m). The capital raised will be used to retire debt associated with this deal and the December 2006 acquisition of North Sheridan, and to increase Tutt Bryant’s working capital. Tat Hong has agreed to take up its full allocation of shares under the deal, maintaining its 70% interest in the company.
