Babylon Pump and Power has acquired the operational assets of Resource Water Group (RWG) for $3 million.
Established in 2011 and based in Canning Vale, Western Australia, RWG provides bore field test pumping equipment and related data collection services as well as a range of water management disciplines to the mining industry.
The services are critical to water users across the resources sector as they develop water management strategies in line with their environmental obligations and operational requirements.
As foreshadowed in a capital raising announcement to the ASX on June 9, Babylon is expanding its mine water management activities.
Under the business acquisition agreement, Babylon will acquire the operational assets (independently valued at over $2m), goodwill, contracts, and intellectual property of RWG.
RWG founder Frank Ashe has entered a services contract and will become a member of the Group’s senior executive. Three other RWG employees will also commence employment with Babylon.
Babylon estimates that the purchase price represents a multiple of three times the expected net EBITDA contribution from the RWG assets.
RWG’s test pumping services are considered an early-stage project engagement service and have consequently led to relationships with a range of well recognised global and Australian mining companies including BHP, Rio Tinto, FMG, Roy Hill and Newcrest Mining.