How Will IPD Group’s $37.5M Platinum Cables Deal Transform Its Mining Sector Reach?

Strategic Acquisition in Mining Sector

IPD Group has taken a significant step to deepen its involvement in the mining sector by acquiring Platinum Cables Pty Ltd, a specialist Australian provider of high-performance cable solutions tailored for mining operations. The $37.5 million upfront deal, supplemented by a potential earn-out of up to $7.5 million based on future earnings growth, reflects IPD’s commitment to expanding its technical capabilities and market reach.

Platinum Cables, with nearly 25 years of experience and a national footprint spanning from New South Wales to Western Australia, brings a strong track record of supplying durable, compliant cables engineered for harsh mining environments. Their expertise in power, communication, and optical fibre cables complements IPD’s existing product portfolio, creating fertile ground for cross-selling opportunities and enhanced customer engagement.

Financial Impact and Operational Continuity

The acquisition is expected to be accretive to IPD’s earnings per share by approximately 11.5% on a pro forma basis for FY25, excluding synergies and one-off transaction costs. Platinum Cables reported an EBIT of $7.2 million on revenue of $44.8 million for FY25, boasting a healthy EBIT margin of 16.1%. This acquisition nudges IPD’s pro forma EBIT margin slightly higher, from 11.1% to 11.5%, while maintaining a conservative leverage ratio of around 0.9 times gross debt to EBITDA.

Importantly, Platinum Cables will continue to operate as a standalone business with its current management team retained under an earn-out incentive structure. This approach aims to preserve operational stability and leverage existing expertise while gradually integrating shared services to improve efficiency over time.

Strategic Rationale and Market Positioning

The acquisition aligns closely with IPD Group’s strategic pillar of business growth within the mining sector. By adding Platinum’s specialised cable solutions, IPD not only broadens its product offering but also strengthens relationships with some of Australia’s largest mining companies. The complementary nature of the two businesses means there is minimal product overlap, which enhances cross-selling potential and sales synergies across the group.

Moreover, the deal expands IPD’s revenue base and technical expertise, positioning the group to better serve demanding mining and infrastructure projects nationwide. The acquisition also supports IPD’s medium-term growth ambitions by unlocking new market segments and leveraging Platinum’s established logistics and engineering capabilities.

Funding and Future Outlook

The transaction is primarily funded through new debt facilities, including an expanded core debt facility with a $56.1 million limit and a $10 million working capital facility. This financing structure limits shareholder dilution and reflects confidence in the combined entity’s cash flow generation. With the acquisition expected to complete by the end of December 2025, investors will be watching closely for the realisation of anticipated synergies and the impact on IPD’s broader mining sector strategy.