Babylon Pump and Power (ASX: BPP) has completed the acquisition of all shares of RHB Engineering Pty Ltd for a total consideration of $3.0 million.
Babylon announced on 29 December 2022 that it had entered into agreement to acquire RBH, a provider of rental pumps and specialist mechanical services based in Boddington, Western Australia.
- Babylon has acquired all shares of Boddington, W.A. based specialist rental pump provider RBH Engineering Pty Ltd effective 31 January 2023
- A$3.0m purchase price represents a multiple of 3 times expected EBITDA contribution
- Fixed assets independently valued at $2.6 million
- RBH is being acquired on the basis that its balance sheet is debt free and working capital neutral
- Immediate earnings contribution through ongoing high utilisation and minimal overheads
RBH will be absorbed into Babylon’s existing operations with minimal incremental overheads, resulting in high net margin contributions to financial performance. The RBH assets have been independently valued at over $2.6 million and will add circa 50 rental assets to the Babylon rental fleet.