SYDNEY, AUSTRALIA: Babylon Pump and Power (ASX: BPP) has executed an agreement to acquire all shares of RHB Engineering (RBH) for $3.0 million.
RBH is based in Boddington, Western Australia, providing rental pumps and specialist mechanical services in the water management field. These pumps and services are critical to mining operations in Southwest and other areas of Western Australia.
The RBH assets have been independently valued at over $2.6 million. They have high utilisation rates and will provide immediate earnings contribution to BPP through existing rental contracts with clients.
Babylon Pump and Power Managing Director, Michael Shelby said: “Management of groundwater and water ingress issues remain a ‘mission critical’ requirement for the mining and resource sector and the acquisition of RBH is a further strategic step into this attractive sector.
This is an exciting and well-priced acquisition for Babylon which will expand our rental fleet, client base and water management activities.
The acquisition complements our current operations with minimal increase in overheads while continuing to advance our rental and water management strategy.”