Babylon Pump & Power is expanding its rental and technical capabilities with the acquisition of Blue Hire, a Bunbury-based provider of pump hire, hydrotesting, and customised water project services. The deal strengthens Babylon’s footprint across Western Australia’s mining, industrial, and agricultural sectors, and forms part of the company’s broader growth strategy.
This follows Babylon’s recent acquisition of Matrix Hydro Services, a Perth-based specialist in groundwater and aquifer testing, further enhancing the company’s water services offering.
Complementary capabilities with no customer overlap
The addition of Blue Hire brings a fleet of over 140 units, including pumps, generators, and ancillary water management equipment. With more than a decade of experience, Blue Hire delivers high-performance fluid transfer and pressure testing services, including dry hire of centrifugal pump systems, crane-mounted slurry pumps, and hydrotesting of HDPE pipelines.
Importantly, there is no client overlap between Blue Hire and Babylon, enabling strong cross-selling potential and improved fleet utilisation. Blue Hire founder Byron Ynema will join Babylon following the acquisition to manage the combined rental fleet and ensure operational continuity.
Financial uplift and integration leadership
Combined with the recently integrated Matrix team, Babylon’s expanded platform now offers end-to-end water management services across equipment rental, hydrotesting, and groundwater projects. On a pro forma basis, Babylon’s FY24 group revenue is estimated at $54 million, with EBITDA of $14 million. The Blue Hire acquisition was secured at an upfront multiple of 2.5 times EBITDA, offering immediate value to shareholders.
Babylon Pump & Power CEO and Managing Director Michael Shelby described the move as a strategic step-change.
“This milestone delivers the meaningful rental scale that we have been chasing, strengthens our geographic reach and adds a proven, profitable dry hire business to our platform. Together with Matrix, this deal positions Babylon as a true specialty water services provider to Australia’s resource sector.”
Funding and forward momentum
The Blue Hire acquisition is being funded through a new $21.2 million debt facility with NAB, which also refinances existing loans. Babylon confirmed it has the cash flow to meet all future debt obligations. Additionally, related-party loans to Blue Hire totalling approximately $9 million will be repaid at settlement.
The transaction is expected to be completed by 30 June 2025, aligning with Babylon’s growth schedule and shareholder engagement plans.
A scalable platform for future success
With the acquisitions of Blue Hire and Matrix now advancing, Babylon is well-positioned to deliver high-margin water services across Australia’s resource-focused regions. The company’s growing fleet, enhanced technical capacity, and expanding leadership team provide a strong foundation for continued market share growth in the pump and water infrastructure sectors.
