IPD Group (IPG) M&A Announcement summary

Deal rationale and strategic fit

• Acquisition of Platinum Cables enhances presence and capability in the mining sector, deepens customer relationships, and complements existing offerings, enabling cross-selling and packaged solutions without product overlap.

• Platinum Cables brings strong engineering, compliance, and technical expertise, with a focus on high-performance, mines-approved cables for harsh environments.

• The deal addresses a strategic gap, providing immediate access to mines-approved cables and supports the group's growth strategy through targeted, synergistic acquisitions.

• Diversifies end markets, reducing reliance on commercial construction and ABB as a vendor, and expands into renewables, rail, and infrastructure.

• Leverages sector tailwinds, including electrification and decarbonisation of the Australian economy.

Financial terms and conditions

• Upfront payment of AUD 37.5 million (~5.2x FY25 EBIT), with AUD 37 million in cash, AUD 500,000 in shares, and an earnout capped at AUD 7.5 million based on EBIT growth through December 2026.

• Funded primarily through new and expanded debt facilities, with minimal shareholder dilution and a new AUD 10 million working capital facility.

• Total debt drawn at completion will be AUD 48.6 million; pro forma leverage ~0.9x gross debt/FY25 EBITDA.

Synergies and expected cost savings

• Focus on leveraging sales synergies and significant cross-selling opportunities, especially combining mines-approved cables with other engineered products.

• No overlap in product offerings ensures a complementary fit and operational efficiencies over time.

• Longer-term plans to utilize shared services for cost-effective scaling and efficiency gains.