HIGH WYCOMBE: Babylon Pump & Power Limited (ASX: BPP) announced Monday it has entered into a binding agreement to acquire 100% of Blue Hire, a Western Australia-based specialist in pump hire and hydrotesting solutions, as part of its strategy to expand its rental and technical water services platform.
The acquisition, valued at an upfront EBITDA multiple of 2.5 times Blue Hire’s fiscal 2024 earnings, is expected to bolster Babylon’s revenue and profitability. On a pro forma basis, the combined group—including the pending acquisition of Matrix Hydro Services—would have reported fiscal 2024 revenue of approximately $54 million and EBITDA of $14 million.
Blue Hire’s founder, Byron Ynema, will join Babylon’s leadership team to oversee the integrated rental fleet. The deal adds 140 rental units to Babylon’s portfolio, targeting mining, industrial and agricultural sectors with minimal client overlap.
Funding for the acquisition includes a new debt facility with National Australia Bank (NAB), totaling up to $21.2 million. The transaction is slated for completion by June 30, 2025, pending standard conditions.
Separately, Babylon extended its retail entitlement offer deadline to June 13, 2025, allowing shareholders additional time to participate.
“This acquisition marks a step-change in our rental capability,” said Babylon CEO Michael Shelby, citing synergies and growth opportunities. An investor webinar is scheduled for June 5 to detail the expanded strategy.
Key Dates:
- Retail Entitlement Offer closes: June 13, 2025
- Acquisition completion target: June 30, 2025