IPD Group (ASX:IPG) management used a company briefing led by CEO Michael Sainsbury and CFO Jason Boschetti to outline the rationale, structure, and expected financial impact of its acquisition of Platinum Cables, a supplier of high-performance cabling solutions used predominantly in mining applications.
Acquisition overview and strategic fit
Sainsbury described Platinum Cables as a “leading Australian provider” of high-performance power, communications, and optical fiber cabling, with most revenue derived from the mining sector, alongside exposure to resources and rail. He said the acquisition strengthens IPD Group’s position in mining and creates sales opportunities across the group, including within CMI, IPD’s power distribution activities, and EX Engineering.
Transaction terms, earnout, and funding
On the call, Sainsbury detailed total consideration as AUD 37 million in cash plus AUD 500,000 in shares issued to Platinum’s CFO. He also referenced an upfront payment of AUD 37.5 million in discussing the purchase price, describing it as a 5.2x multiple of EBIT.
The transaction includes a contingent cash earnout of up to AUD 7.5 million. Sainsbury said it is calculated as five times any EBIT growth achieved in calendar 2026 versus the 2025 result, capped at AUD 7.5 million. In response to an analyst question, he explained that a AUD 1.5 million increase in EBIT would result in the full earnout payout, and that outperformance above that level would still be capped.
Funding is to be “primarily through cash and debt” via new facilities arranged with Commonwealth Bank. Management said this approach results in minimal shareholder dilution. Sainsbury outlined an expanded core debt facility with a limit of AUD 56.1 million to cover the upfront consideration, the earnout, and AUD 11.1 million of existing debt, as well as a new AUD 10 million working capital facility. He said pro forma leverage would be 0.9x FY2025 EBITDA and noted the group’s policy is comfort up to one times, with a maximum of one and a half times.
Platinum Cables profile and operating model
Platinum Cables generated AUD 44.8 million of revenue in FY2025 and delivered AUD 7.2 million of EBIT and AUD 8.2 million of EBITDA, according to management. Sainsbury said this equated to an EBIT margin of 16.1% in FY2025. He added that revenue grew at a 10% cumulative annual growth rate from 2021 to 2025, describing growth as “very consistent” across those years.
The business was established in 2001 and had 41 full-time employees as of June 2025. It operates from two distribution centers—one in Wetherill Park in Sydney (in the same street as IPD Group’s corporate head office) and one in Perth—supported by sales operations nationally. Management described Platinum’s differentiation as being heavily engineering-led, focused on specification work, compliance, and certification, with end-to-end traceability and stringent quality assurance processes.
Responding to questions about supply chain and manufacturing, Sainsbury said the product is manufactured offshore, predominantly through two vendors. He said major mining clients have visited the manufacturing plants to assess quality processes, and that Platinum also performs additional local quality checks upon receipt of products.
Mining approvals, barriers to entry, and cross-selling opportunities
Sainsbury repeatedly highlighted the importance of mine-site approvals and customer trust as barriers to entry in mining-grade cabling. He said it can take years and significant investment for a supplier to gain approval, and noted that CMI did not have mining-approved cable. He argued that acquiring Platinum provides immediate access to those approvals and a stronger position in mining, while also making it difficult for new entrants to break into the market.
A central cross-selling opportunity discussed was the pairing of CMI’s Minto plugs—which are already used in mining environments—with Platinum’s mine-approved cables. Sainsbury said CMI had historically been able to sell plugs but could not provide the cable that “hangs off the back” of those plugs, describing that gap as a long-running limitation.
Management also referenced opportunities linked to renewables in mining and said there are potential large project opportunities in that area, while also pointing to growth potential in transport infrastructure, particularly rail.
- Case study (WA): Platinum supplied more than 15,000 meters of trailing cable since 2016 to a Western Australian open-pit gold and copper mine described as one of Australia’s largest gold producers.
- Case study (Pilbara and Central Queensland): Platinum supplied more than 5,000 meters of cable to two mining sites supporting large-scale iron ore operations.
Pro forma financial impact and end-market mix
Boschetti presented FY2025 pro forma financials combining IPD Group and Platinum Cables. He said the pro forma table includes assumed interest expense as if the acquisition had occurred before the financial year, excludes sales synergies, and includes AUD 300,000 of assumed ongoing integration-related costs.
According to Boschetti, Platinum delivers 12.6% pro forma top-line accretion, taking the group to approximately AUD 400 million in revenue on a pro forma basis. He said accretion was stronger at the operating earnings level, with 17%–17.6% uplift across EBITDA and EBIT, and 11.8% accretion at net profit after interest. Management reiterated pro forma EPS accretion of 11.5%, described as excluding any synergies and costs.
Boschetti also discussed how the acquisition shifts the group’s product and end-market mix. On a pro forma basis, cable increases to 30% of product type from 21% in IPD’s FY2025 actuals. Mining, infrastructure, and industrial becomes the largest end market at 32% of group revenue, up from 23%, with commercial construction and buildings becoming the second-largest at 28%. He said Platinum represents 11% of group revenue and 15% of group EBITDA on a pro forma basis.
In closing remarks, Sainsbury said the transaction also reduces vendor concentration, specifically diluting the importance of ABB as the group’s largest vendor. He also addressed investor commentary about acquisition capacity following Mohammed’s move from an executive role to a non-executive capacity, stating Mohammed will continue to devote significant time to acquisitions and that the group has a strong pipeline.
About IPD Group (ASX:IPG)
IPD Group Limited distributes electrical infrastructure in Australia. It operates through Products Division and Services Division segments. The company offers power distribution; industrial and motor control; automation and industrial communication; power monitoring; electrical cables; manufacture and distribution of cable plugs; and hazardous area equipment under the third-party brands, such as ABB, Elsteel, Emerson, Red Lion, GE, Socomec, and DEHN. It also offers installation and commissioning; calibration and testing; maintenance and repairs; electric vehicle solutions; and refurbishment and other services.
