Highlights

  • IPD Group will acquire Platinum Cables for AUD 37.5m upfront, with potential earn-out payments of up to AUD 7.5m.
  • The transaction is expected to deliver ~11.5% pro forma FY25 EPS accretion and lift EBIT margins to 11.6%.
  • Completion is targeted for 31 December 2025, with funding supported by expanded debt facilities.

IPD Group Limited (ASX: IPG) has entered into a binding agreement to acquire Platinum Cables Pty Ltd, an Australian supplier of specialised cable solutions for the mining and resources sector. The transaction, valued at AUD 37.5 million upfront, is expected to complete by 31 December 2025 and will be funded primarily through cash and expanded debt facilities.

Acquisition Structure and Consideration

Under the agreed terms, IPD will pay upfront consideration of AUD 37.5 million, comprising AUD 37.0 million in cash and AUD 0.5 million in newly issued IPD shares. The transaction also includes contingent cash consideration of up to AUD 7.5 million, linked to EBIT growth achieved through to 31 December 2026. The earn-out mechanism is based on a 5x multiple applied to incremental EBIT growth over the period.

The upfront consideration implies a multiple of approximately 5.2x Platinum’s FY25 EBIT.

Funding and Balance Sheet Impact

The acquisition will be funded primarily through cash and debt, supported by an expanded core debt facility with the Commonwealth Bank of Australia, increasing the facility limit to AUD 56.1 million. IPD has also secured a new AUD 10 million working capital facility as part of the funding arrangements.

At completion, total debt drawn is expected to be AUD 48.6 million, comprising the acquisition consideration of AUD 37.5 million and existing drawn debt of AUD 11.1 million. On a pro forma basis, leverage is expected to be approximately 0.9x gross debt to FY25 EBITDA.

Financial Contribution and Earnings Profile

On a pro forma basis for FY25, the acquisition is expected to deliver earnings per share accretion of approximately 11.5%, excluding synergies and one-off transaction costs. The combined group’s FY25 pro forma EBIT margin is expected to increase to 11.6%.

Platinum Cables generated FY25 revenue of AUD 44.8 million, representing a compound annual growth rate of approximately 10% between FY21 and FY25. FY25 EBITDA was AUD 8.2 million, equating to an EBITDA margin of 18.2%, while EBIT for the same period was AUD 7.2 million, with a margin of 16.1%.

Platinum Cables Business Profile

Platinum Cables designs and supplies power, communication and optical fibre cables used in demanding mining and resource environments. Its products are engineered for durability and compliance in remote and harsh operating conditions.

The business services a range of mining and resource sector customers and will continue to operate as a stand-alone entity following completion. Platinum’s existing management team will remain in place under earn-out arrangements.

Transaction Completion and Structure

Completion of the transaction is targeted for 31 December 2025. The acquisition structure limits equity dilution through minimal share issuance, with the majority of funding sourced from cash and debt facilities.

IPG shares were trading 5.476% higher at AUD 4.430 per share at the time of writing on 30 December 2025.