Babylon Pump makes ‘milestone’ acquisition in Australia

Australian pump rental specialist Babylon Pump & Power Ltd has agreed to acquire Blue Hire, a competitor pump rental company in Western Australia, for A$16.35 million (€9.3 million), plus A$6 to A$8.2 million more depending on future performance.

Blue Hire, founded in Bunbury, WA, is known for its pump hire and hydrotesting capabilities, servicing industries such as mining, industrial, marine, and agriculture across regional Western Australia.

Its founder, Byron Ynema, will join Babylon’s leadership team to manage the combined rental fleet post-acquisition.

The acquisition complements Babylon’s existing rental offering, particularly in the small-to-medium horsepower pump segment, and broadens its geographic reach without overlapping client bases. Babylon is based in Perth with operations in Western Australia and Queensland.

Revenues in the financial year 2024 for the combined business, including the recent A$2.5 million acquisition of Matrix Hydro Services, would be around A$54 million (€30.7 million), with EBITDA profit of A$14 million. Blue Hire and Matrix will together have added around A$12.5 million in revenues.

Babylon is a specialist in high-pressure pumping, dewatering, and project water management for the Australian resources sector. With operations primarily in Western Australia and Queensland, it also offers power generation and maintenance services for heavy equipment.

Blue Hire has operated for over a decade and has a rental fleet exceeding 140 units, including pumps, generators, and filtration equipment. Its services include dry hire of pumping equipment, high-flow centrifugal systems and filter sets; crane-mounted slurry pump solutions; large-scale hydrotesting operations for HDPE pipelines and pressure vessels; and water transfer and filtration solutions.

Babylon CEO Michael Shelby said; “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.

“With Byron joining the team, we are confident in a seamless integration and in delivering sustained growth. Together with the acquisition of Matrix, this deal positions Babylon as a true specialty water services provider to Australia’s resource sector.

“With our scalable platform now in place, we’re entering a new chapter for Babylon with a larger rental fleet, increased market share and an expanded leadership team.”

The deal is being funded through a new debt facility arranged with National Australia Bank (NAB), providing up to A$21.2 million to cover acquisition costs and to refinance existing loans.

The acquisition is expected to complete by 30 June 30, 2025.