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- Vulcan Steel (VSL) signs an agreement to acquire 100 per cent of aluminium distributor, Ullrich Aluminium for NZ$165 million (A$148.63 million)
- Ullrich Aluminium is a 60-year-old, family-owned, aluminium supplier based in Perth that operates in 43 locations across Australia and New Zealand
- The sale value is comprised of net tangible assets of NZ$131 million and net debt of NZ$34 million
- The acquisition will be fully debt funded, and is set to be finalised on September 16, 2022
- VSL shares are up 3.97 per cent to trade at $8.64 each at 3:40 pm AEST
Vulcan Steel (VSL) has signed a conditional sale and purchase agreement to acquire 100 per cent of aluminium distributor, Ullrich Aluminium for NZ$165 million (A$148.63 million).
Ullrich Aluminium is a 60-year-old, family-owned, aluminium supplier based in Perth that operates in 43 locations across Australia and New Zealand.
The transaction price comprises net tangible assets of NZ$131 million and net debt of NZ$34 million, however, both are subject to the finalisation of accounts through to July 31, 2022.
“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,” Vulcan CEO and Managing Director Rhys Jones said.
“The aluminium distribution market is an opportunity which Vulcan has been considering for many years. Ullrich’s platform and network combined with Vulcan offer significant potential synergies.
“We are at the formative stage of our integration process and intend to provide more
details on earnings and synergies with the release of Vulcan’s FY22 result on 24 August.”
The settlement is expected to be completed on September 16, 2022.
VSL shares were up 3.97 per cent to trade at $8.64 each at 3:40 pm AEST.
