IPD Group completes $101 million buyout of CMI Operations

$$BDO.LiveSite.Deals.DealType$$Transaction Services
$$BDO.LiveSite.Deals.ClientName$$CMI Operations

Established in 1991 in Sydney, CMI Operations is a leading Australian manufacturer and distributor of electrical cables and plug brands. The sale to ASX-listed electrical products distributor, IPD Group for $101 million is based on:

  • An upfront payment of $92.1m (equivalent to ~6x CMI’s FY23 EBIT)
  • A contingent payment of $6 for every dollar by which CMI’s FY24A EBIT exceeds FY23A EBITDA up to $8.9m.

The acquisition will see IPD expand their national presence in the electrical industry through its product suite, supplier diversity and overall value to existing and potential customers.

BDO's Corporate Finance team was engaged by CMI Operations to provide vendor assistance ahead of the sale.