- Babylon Pump and Power (BPP) has completed the purchase of Pilbara Trucks, which trades under the name Ausblast
- Last month, the company agreed to purchase Ausblast, a West Australian specialised mining service business
- For the purchase, BPP paid $4.4 million and issued 40 million shares
- Ausblast facilities in Port Kennedy and in particular Newman will provide Babylon with an enhanced strategic operating presence
- On market close for the day, Babylon is in the grey and trading at 2.2 cents per share
Babylon Pump and Power (BPP) has completed the purchase of Pilbara Trucks, which trades under the name Ausblast.
Last month, the company entered into an agreement to purchase Ausblast, a specialised mining service business based in Western Australia.
For the purchase, BPP paid $4.4 million and issued 40 million shares. A deferred payment of $1 million is subject to the Ausblast business achieving at least $1 million earnings before interest, taxes, depreciation, and amortisation (EBITDA) in the 2023 financial year.
Ausblast is a highly complementary and accretive purchase for Babylon, which will significantly enhance the company’s scale and serving offering.
“The Ausblast business is a standout opportunity and logical fit for Babylon,” Chairman Michael Shelby said last month.
“With our WA operations going from strength‐to‐strength, now is the right time to expand our offerings to include a specialist services division,” he added.
Notably, Ausblast facilities in Port Kennedy and in particular Newman will provide Babylon with an enhanced strategic operating presence.
“Ausblast is considered the third-largest high-pressure water blasting service provider in Western Australia with significant scope for growth,” the company told the market.
Babylon has stated that Ausblast’s management team will continue to lease the company as an independent business with Babylon.
On market close for the day, Babylon is in the grey and trading at 2.2 cents per share.