Babylon Pump and Power (ASX:BPP) reports it has acquired privately held mining services company RHB Engineering for $3 million.
The transaction is subject to standard conditions precedent, all of which Babylon Pump and Power says it expects to satisfy, with completion scheduled to occur on 31 January 2023.
The RBH assets have been independently valued at more than $2.6 million. Babylon Pump and Power reports the assets have high utilisation rates and will provide immediate earnings through existing rental contracts with clients.
Babylon Pump and Power reports the assets have high utilisation rates
RBH is a Boddington, Western Australia-based company providing rental pumps and specialist mechanical services in the water management field. These pumps and services are critical to mining operations in the South West and other areas of Western Australia.
Under the terms of the deal, a $1.2 million deferred cash component of 12 equal monthly payments will be financed by the vendor and funded by RBH’s ongoing operations.
Interest of 8.5% per annum will accrue daily and be payable no later than the final deferred considerations payment.
Babylon Operations was established in February 2017 by Michael Shelby, an oil and gas executive with international experience. It was initially focused on the oil and gas and mining sectors, providing specialised equipment rental, experienced operators and technicians, and repair and maintenance of customer equipment with an emphasis on large diesel engines.
In November 2017, Babylon Operations was acquired by IM Medical (IMI). The acquisition was a significant change in the nature of their activities to industrial services. IMI sought and gained ASX and shareholder approval to change their ASX code from IMI to BPP.
Michael Shelby was appointed as Executive Chairman, Patrick Maingard was appointed Executive Director and Michael Kenyon was appointed Non-Executive Director and Company Secretary.
Babylon Power and Pump’s head office is based in Forrestfield, Perth in Western Australia.
Write to Adam Orlando at Mining.com.au
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