IPD Group’s $37.5M Acquisition to Boost FY25 EPS by 11.5%

A Strategic Acquisition in Mining Infrastructure

IPD Group Limited has taken a decisive step to bolster its presence in the mining and resources sector by agreeing to acquire Platinum Cables Pty Ltd. The transaction, valued at $37.5 million upfront with potential additional payments of up to $7.5 million based on future earnings growth, is set to complete by the end of 2025. This move aligns with IPD’s broader growth strategy focused on expanding its electrical solutions footprint within critical infrastructure sectors.

Platinum Cables is recognised for its specialised, high-performance cable solutions designed for the demanding environments of mining operations. Their product range includes power, communication, and optical fibre cables engineered to withstand harsh and remote conditions. This complements IPD’s existing portfolio, which centres on energy management and automation technologies, particularly those supporting the electrification and decarbonisation of the economy.

Financial and Operational Implications

The acquisition is primarily funded through a combination of cash and debt, leveraging an expanded core debt facility with the Commonwealth Bank of Australia. The total debt drawn at completion will be $48.6 million, including the upfront consideration and existing Platinum debt. Importantly, the deal is structured to minimise shareholder dilution, with only $0.5 million issued in new shares.

From a financial perspective, the acquisition is immediately accretive, with pro forma earnings per share for FY25 expected to rise by approximately 11.5%, excluding synergies and one-off transaction costs. The EBIT margin is also projected to improve to 11.6%, reflecting Platinum’s strong operational performance. Management continuity has been secured, with Platinum’s existing leadership team remaining in place to operate the business as a stand-alone entity under earn-out arrangements, ensuring stability and preserving the company’s growth momentum.

Strategic Fit and Future Growth Potential

IPD’s CEO Michael Sainsbury emphasised the strategic rationale behind the acquisition, highlighting the complementary nature of Platinum’s offerings and the opportunity to deepen relationships within the mining sector. The transaction opens up meaningful cross-selling opportunities across IPD’s combined product suite, with no overlap in product lines, thereby enhancing the overall value proposition to customers.

Moreover, the acquisition brings additional technical expertise that is expected to support sustainable growth in a specialised market segment. As the mining industry increasingly embraces electrification and automation, IPD is positioning itself to capitalise on these tailwinds. The integration of Platinum Cables is anticipated to generate operational efficiencies over time, although these synergies have yet to be quantified.

Platinum Cables’ founder and managing director, David Bambach, expressed optimism about the future, signalling confidence in growing the business within the broader IPD Group framework.