IPD Group (ASX:IPG) has signed a binding agreement to acquire Platinum Cables Pty Ltd, an Australian cable supplier focused on mining and resources customers.
Deal terms and funding
The agreed consideration is $37.5 million upfront (about 5.2x FY25 EBIT), comprising $37 million cash and $500,000 in newly issued IPD shares. The deal also includes contingent cash consideration of up to $7.5 million, linked to EBIT growth through December 31, 2026 (structured at a 5x multiple on the EBIT growth component).IPD said the transaction will be funded “primarily” through cash and debt, supported by an expanded core debt facility with CBA to a $56.1 million limit and a new $10 million working capital facility.
“The acquisition of Platinum Cables is a continuation of our growth strategy that reinforces our leadership in the mining sector and delivers immediate earnings accretion for shareholders," IPD Group CEO Michael Sainsbury said. "The Platinum Cables business is highly complementary to our combined IPD and CMI business units and is leveraged to the same tailwinds, including the electrification of the Australian economy. With their strong track record of organic growth and the potential for significant revenue synergies, we look forward to the Platinum Cables team joining IPD Group.”
Expected completion is December 31, 2025.
Platinum’s existing management team is expected to remain in place, operating the business as a stand-alone entity under earn-out arrangements.
Strategic and financial impact
Platinum supplies power, communication and optical fibre cables designed for harsh and remote operating environments.
On IPD’s pro forma numbers for FY25 (excluding synergies and one-off transaction costs), the company forecasts ~11.5% EPS accretion and an increase in pro forma FY25 EBIT margin to 11.6%.
IPD also outlined its expected post-completion balance sheet position, with total debt drawn of $48.6 million and pro forma leverage of ~0.9x gross debt/FY25 EBITDA.
Platinum is reported to have FY25 revenue of $44.8 million (revenue CAGR ~10% from FY21–FY25), FY25 EBITDA of $8.2 million (margin 18.2%) and FY25 EBIT of $7.2 million (margin 16.1%).
IPD will host an investor conference call on January 6, 2026, with webcast details to follow.
About IPD Group
IPD Group provides electrical solutions across energy management and automation, with a focus on improving electrical infrastructure.
The company’s offering centres on energy efficiency, automation and secure connectivity, with an emphasis on safety and wellbeing.
IPD says it is committed to innovation and positions its business as supporting the broader electrification and decarbonisation of the economy.