Babylon Pump & Power (ASX: BPP) is set to acquire 100% of Blue Hire, a Western Australian specialist in pumping and hydrotesting solutions. This acquisition significantly boosts Babylon’s rental capabilities and expands its market reach. The deal is valued at $16.35 million upfront, plus $1.65 million in shares, with deferred consideration potentially adding another $6 million to $8.2 million based on performance. Blue Hire’s founder, Byron Ynema, will join Babylon to manage the combined rental fleet.
The acquisition of Blue Hire, along with the pending acquisition of Matrix Hydro Services, positions Babylon as a prominent specialty water services provider to the Australian resource sector. Pro forma figures for FY24, including both Blue Hire and Matrix, show a combined revenue of approximately $54 million and EBITDA of around $14 million.
To finance the acquisition, Babylon has secured a $21.2 million debt facility from NAB, which will also refinance an existing $2.8 million term loan. An existing $5.1m debtor finance facility will remain unchanged and a revolving lease facility will be reduced from $5.5 million to $5.0 million. The NAB facility includes standard security arrangements and debt covenants. Babylon anticipates completing both the Matrix and Blue Hire acquisitions around June 30, 2025.
Furthermore, Babylon has extended the closing date for its Retail Entitlement Offer to 5pm AWST on Friday, June 13, 2025, to accommodate shareholders. The company held an investor webinar to provide an overview of its expanded platform and growth outlook following these acquisitions. Management is optimistic about the company’s future, emphasizing the creation of long-term value for shareholders.
