Babylon Pump & Power has established a rental service base on the East Coast of Australia with the completion of its acquisition of Primepower Queensland.
The company announced the deal with the leading diesel engine specialist back on July 26, saying it would pay for the company with a mixture of cash, shares, delayed performance payments and assumption of debt.
Primepower was founded in Mackay, Queensland, in 2004, and has a client base including Peabody, Fortescue Metals Group, BHP Mitsubishi Alliance, Anglo American, Wesfarmers and Minerva.
The Primepower buy, according to Babylon, offers:
- Geographic and technical expansion;
- Diversification of commodity exposure;
- Purchasing power and contract synergies;
- East coast platform to introduce rental services; and
- Workshop flexibility with no additional corporate overhead.
Post-acquisition, Babylon will be one of the largest independent and diversified engine re-builders in Australia, poised for growth in specialist rental nationally, with a focus on Australia’s two key mining states, Western Australia and Queensland, the company said.