SYDNEY: Electrical solutions provider IPD Group Ltd said on Tuesday it agreed to acquire Platinum Cables Pty Ltd, a specialist supplier to Australia’s mining sector, in a deal worth up to A$45 million ($30.1 million).
The initial consideration is A$37.5 million, comprising A$37.0 million in cash and A$0.5 million in new IPD shares. An additional contingent cash payment of up to A$7.5 million is payable based on earnings growth targets through December 2026.
The acquisition of the high-performance cable maker marks a strategic expansion for IPD into the resources sector and is expected to boost its earnings per share by about 11.5% in fiscal 2025, excluding synergies and one-off costs, the company said.
“The Platinum Cables business is highly complementary to our combined IPD and CMI business units and is leveraged to the same tailwinds, including the electrification of the Australian economy,” IPD Group Chief Executive Michael Sainsbury said in a statement.
Platinum Cables, founded and led by Managing Director David Bambach, reported revenue of A$44.8 million and earnings before interest and tax (EBIT) of A$7.2 million for the fiscal year ending December 2025.
IPD said the deal would be funded primarily through cash and an expanded debt facility with Commonwealth Bank of Australia. Upon completion, expected on Dec. 31, IPD’s total debt drawn will be A$48.6 million.
Platinum Cables’ management team will remain to run the business as a standalone entity under earn-out arrangements, IPD said.
IPD will host an investor conference call on Jan. 6, 2026, to discuss the acquisition.
($1 = 1.4939 Australian dollars)