SYDNEY, AUSTRALIA: Babylon Pump and Power (ASX: BPP) has executed an settlement to purchase all shares of RHB Engineering (RBH) for $3.0 million.
RBH is based in Boddington, Western Australia, offering rental pumps and specialist mechanical services within the water administration field. These pumps and services are critical to mining operations in Southwest and different areas of Western Australia.
The RBH assets have been independently valued at over $2.6 million. They have excessive utilisation charges and can present 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 points stay a ‘mission critical’ requirement for the mining and useful resource sector and the acquisition of RBH is a additional strategic step into this attractive sector.
This is an thrilling and well-priced acquisition for Babylon which will expand our rental fleet, client base and water administration activities.
The acquisition enhances our present operations with minimal increase in overheads whereas persevering with to advance our rental and water administration strategy.”