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.