Team Veye November 06, 2026

Alfabs has acquired J&J Vac pump business to unlock new opportunities

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Alfabs Australia Limited (ASX: AAL) announced on 6 November 2026 that it has agreed to acquire the pump business assets of J&J Vac Pty Limited which will add a new product line and expand its presence in the underground coal mining market.

The acquisition covers eight UVU pumps along with the rights to manufacture them as the original equipment manufacturer (OEM) and the transfer of third-party orders for four more units.

The deal involves an upfront payment of $2 million while Alfabs will also pay $80,000 for each additional pump it manufactures and either hires out or sells. The additional payments are capped at 25 pumps with a maximum total of $2 million.

Alfabs has a plan to fund the acquisition through its existing cash reserves and debt facilities. Completion is subject to customary conditions and settlement is expected during November 2026.

J&J's pump business manufactures hires and sells UVU and MGUVU pumping units which mainly serve the underground coal mining market in New South Wales. These pumps help manage liquid and semi-solid materials at underground mining sites.

Alfabs has already tested the pumps internally and with existing end users which will give the company greater confidence in their performance and suitability for its customer base.

The acquired assets are ready for hire and are expected to generate recurring revenue and EBITDA from day one. It can integrate the acquired business through its established customer relationships and existing workshop capacity as well as its technical expertise without the need for additional overheads.

Alfabs will also have opportunities to earn additional revenue from spare parts as well as maintenance and servicing activities.

The acquisition will give Alfabs access to a wider underground mining customer network across New South Wales and Queensland. The transfer of orders for four additional UVU pumps also highlights existing customer demand.

Management expects this bolt-on acquisition to generate returns above the Group's investment hurdle rates. Any future investment in manufacturing will be based on confirmed customer demand which will help to maintain capital discipline.

(Source: Company Announcements)

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