Babylon Pump & Power Limited (ASX:BPP) Acquires Matrix Hydro Services and Launches ANREO
Acquisition of Matrix Hydro Services
Babylon Pump & Power Limited (ASX:BPP) has entered a binding agreement to acquire Matrix Hydro Services Pty Ltd. Matrix specialises in aquifer testing and groundwater management for Western Australia’s resources sector. The $2.5 million upfront acquisition, with an additional $1.1 million deferred, strengthens Babylon’s water management capabilities and consolidates a key competitor.
Accelerated Non-Renounceable Entitlement Offer (ANREO)
To fund the acquisition, Babylon is launching an ANREO to raise $3.5 million. The offer features an entitlement ratio of seven new shares for every twenty held, priced at $0.004 per share. Major shareholders, including Belgravia Strategic Equities Pty Ltd, support the offer and intend to accelerate $1.08 million of entitlements.
Strategic Fit and Management Alignment
Matrix’s founders, Blair McDiarmid and Michael Townley, will join Babylon’s management team, enhancing technical expertise. Their experience in hydrogeological services complements Babylon’s existing operations and strengthens client relationships in the mining sector.
Strategic Outlook
The acquisition positions Babylon as a full-service provider in dewatering, aquifer diagnostics, and water project management. Babylon plans further growth through targeted acquisitions, maintaining a disciplined approach to capital management and sustainable leverage.
Executive Comments
Managing Director and CEO Michael Shelby stated, “I am very pleased to announce the Matrix acquisition which will significantly enhance our ability to serve our clients – bringing together highly specialised diagnostic services with our existing rental and maintenance platforms. With Blair and Michael on board, we are doubling down on our commitment to deliver insight-driven, high-integrity water solutions to WA’s major resource developers. The acquisition terms represent another fiscally disciplined acquisition for Babylon. I look forward to continuing to deliver value for our shareholders and am very positive about the future for Babylon.”
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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