Vulcan to acquire Ullrich Aluminium

Vulcan Steel Limited
29 Neales Road East Tamaki Auckland New Zealand
e: investor@vulcan.co | w: vulcan.co
Vulcan Steel Limited (“Vulcan”)
ASX/NZX/Media Release
22 July 2022
Vulcan to acquire Ullrich Aluminium
Vulcan (ASX: VSL, NZX: VSL) has signed a conditional sale and purchase agreement
(“SPA”) with Gilbert Ullrich the founder owner of Ullrich Aluminium Company Limited
(“Ullrich”, “the Transaction”) to acquire 100% of the company for approximately
NZ$165
1
m
2
(A$149m) which represents the projected book value of net assets and net
debt as at 31 July 2022 excluding NZ$79m capitalised lease obligations.
Established 60 years ago, Ullrich is a major integrated distributor of industrial
aluminium products in Australasia with a large sales network, together with extrusion
facilities and fabrication operations. In the financial years ended 31 March 2021 and
2022, the company recorded NZ$215m and NZ$270m in revenue, respectively, and
NZ$32m (NZ$23m pre-IFRS 16
3
) and NZ$49m in EBITDA
4
(NZ$39m pre-IFRS 16),
respectively.
Commenting on the Transaction Rhys Jones, CEO and Managing Director, said,
“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. 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 Transaction
The NZ$165m transaction price – the enterprise value - comprises the purchase of the
business for projected net tangible assets (NTA) of NZ$131m and net debt within Ullrich
of NZ$34m (both of which are subject to finalisation of accounts through to 31 July
2022). Based on Ullrich’s March years ended 2021 and 2022 earnings, this represents
7.2x and 4.3x pre-IFRS-16 EBITDA multiple, respectively.
Note the projected $34m debt includes working capital, to be reduced, which will be
funded by deferred settlement of $20m for the Transaction in 1H 2023. Adjusting for this,
the effective adjusted enterprise value would be NZ$145m (A$131m). On Ullrich’s March
years ended 2021 and 2022 earnings, this represents 6.3x and 3.8x pre-IFRS 16 EBITDA
multiple, respectively.
Vulcan expects the Transaction to be NPAT and earnings per share accretive in FY23.

1
Includes net debt within Ullrich assumed by Vulcan on completion and subject to finalisation of the accounts for the
period 1-April to 31-July 2022
2
m – “million”
3
IFRS 16 – International Financial Reporting Standard 16 – Accounting for Leases.
4
Earnings Before Interest Tax, Depreciation and Amortisation

Vulcan Steel Limited
29 Neales Road East Tamaki Auckland New Zealand
e: investor@vulcan.co | w: vulcan.co
Transaction funding
This transaction will be fully debt funded. On completion of the settlement (excluding
the NZ$20m working capital deferred payments in 2023) on 16 September 2022, Vulcan
proforma net debt to EBITDA cover based on trailing 12 months earnings to 30 June 2022
is projected to be 1.4x
Completion of the Transaction remains subject to customary adjustments and
conditions to be satisfied by 16 September 2022.

Vulcan will host a conference call to discuss the Transaction.
Webcast and Conference Call Details
Date Friday 22 July 2022
Time 11.30 am NZDT, 9.30am AEDT
Webcast https://webcast.openbriefing.com/8990/ (listen mode only)
An online archive of the webcast event will be available
approximately four hours after the webcast
Conference Call Conference call participants can register for dial-in details at
https://s1.c-conf.com/diamondpass/10023828-dhcn31.html

ENDS
Kar Yue Yeo
Investor and media contact
Email: karyue.yeo@vulcan.co
Phone: +64 9 273 7214
This announcement was authorised by Vulcan Board of Directors

About Vulcan
Founded in 1995, Vulcan is an Australasian-wide industrial product distributor and
value-added processor with 29 logistics and processing facilities employing over 850
staff across the company’s Steel and Metals divisions.
About Ullrich Aluminium
Established 60 years ago, Ullrich is an integrated aluminium distributor with extrusion
facilities and fabrication operations. The company employs more than 600 staff and
operates in 43 locations across Australia and New Zealand.