IPD Group (ASX:IPG) acquires EX Engineering for $10.2m

• IPD Group (IPG) agrees to acquire Perth-based EX Engineering for $10.2 million
• EX Engineering specialises in the design, stocking, supply, modification, and repair of electrical hazardous area equipment
• In FY23, EX Engineering reported revenue of $12.4 million and a normalised EBITDA of $2.5 million
• The deal was settled at $10.2 million, comprising $9.2 million in cash and $1 million in newly-issued IPD shares
• IPD Group is up 2.4 per cent, trading at $4.70 at 11:44 am AEST

IPD Group (IPG) has agreed to acquire Perth-based EX Engineering for $10.2 million.

EX Engineering specialises in the design, stocking, supply, modification, and repair of electrical hazardous area equipment.

The company has been a major player in the industry since 2013, delivering solutions tailored to meet the Ex equipment needs of various sectors, including oil and gas, mining, manufacturing, and agriculture.

EX Engineering also holds a purpose-built workshop in Belmont, Perth, which holds IECEx certification. This certification allows customised, designed, repaired and assembled Ex equipment handled by EX Engineering to comply with all relevant safety standards.

In FY23, EX Engineering reported revenue of $12.4 million and a normalised EBITDA of $2.5 million.

This acquisition deal was settled at $10.2 million, with $9.2 million in cash and $1 million in newly-issued IPD shares. The cash component will be funded from IPD’s existing cash reserves.

The move forms part of the company’s focus on expanding the EX Engineering business to the Eastern states.

IPD Group was up 2.4 per cent, trading at $4.70 at 11:44 am AEST.