Vulcan Steel in $165m deal to buy Ullrich

Dual-listed steel group Vulcan Steel says it has signed a conditional deal to buy Ullrich Aluminium for $165 million.

Vulcan said the deal would be fully debt-funded.

Ullrich is a large integrated distributor of industrial aluminium products in Australasia with a big sales network, together with extrusion facilities and fabrication operations.

In the financial years ended March 2021 and 2022, Ullrich recorded $215 million and $270m in revenue respectively, and $32m and $49m in earnings before interest, tax, depreciation and amortisation.

Vulcan managing director and chief executive Rhys Jones said Vulcan had had its eyes on the aluminium sector for some time.

“The acquisition of Ullrich significantly adds to the network reach and scale of Vulcan and supports our growth strategy to be the most customer service focused and efficient steel and metal products distributor and value-added processor in Australasia.

“Ullrich’s platform and network combined with Vulcan offer significant potential synergies.”

The parties were still in a “formative stage” of their integration, he said.

More details on earnings and synergies will come with the release of Vulcan’s annual result on August 24.

Vulcan expects the transaction to add to net profit and earnings per share in the 2023 full year.

Founded in 1995, Vulcan is an Australasian industrial product distributor and value-added processor employing over 850 staff. The company listed on the NZX and the ASX last November.

Founded in Auckland in 1961, Ullrich Aluminium employs more than 600 staff and operates in 43 locations across Australia and New Zealand.

Shares in Vulcan were yesterday trading at $9.22, up 15c from Thursday’s close.