IPD Group (ASX:IPD) has entered a binding agreement to acquire Platinum Cables, a provider of high-performance cable solutions for Australia's mining and resources sector, in a deal valued at $37.5 million upfront, with potential earn-out payments of up to $7.5 million based on future earnings.
The transaction will be primarily funded through cash and an expanded debt facility, with Platinum's management remaining in place to operate as a stand-alone business.
Platinum Cables generated FY25 revenue of $44.8 million and EBIT of $7.2 million, delivering strong margins and a 10% CAGR over the past four years.
IPD expects the acquisition to be EPS accretive by approximately 11.5% in FY25 and to increase pro forma EBIT margins to 11.6%, while maintaining low leverage.
The acquisition strengthens IPD's position in the mining sector, creating cross-selling opportunities, adding specialised technical expertise, and complementing its existing product portfolio.
IPD Group CEO Michael Sainsbury said the deal "reinforces our leadership in the mining sector and delivers immediate earnings accretion," while Platinum Cables founder David Bambach highlighted growth prospects within the broader IPD Group.