Vulcan Steel to Raise A$87M Equity for NZ$88M Roofing Industries Acquisition

• Acquisition of Roofing Industries for NZ$88 million
• Roofing Industries generated NZ$160 million revenue and NZ$25 million EBITDA FY25
• Equity raising of approximately A$87.1 million via entitlement offer
• Transaction expected to be earnings accretive for FY25
• Completion targeted for second quarter FY26, subject to conditions

Strategic Acquisition Broadens Vulcan’s Market Reach

Vulcan Steel Limited has announced a conditional agreement to acquire Roofing Industries Limited for NZ$88 million, a move that significantly broadens Vulcan’s presence in the New Zealand steel roofing and cladding sector. Roofing Industries, a well-established player with 15 locations nationwide and a loyal customer base, reported over NZ$160 million in revenue and NZ$25 million in EBITDA for the financial year ended March 2025.

This acquisition represents Vulcan’s entry into a new vertical within the construction and building materials market, diversifying its portfolio beyond its traditional steel and metals distribution. The deal includes Roofing Industries’ interests in related roofing product businesses and non-wholly owned branch companies, effectively expanding Vulcan’s operational footprint across both the North and South Islands.

Equity Raise to Fund Growth Ambitions

To finance the acquisition, Vulcan is undertaking a fully underwritten pro-rata accelerated renounceable entitlement offer, aiming to raise approximately A$87.1 million by issuing 14.6 million new shares at A$5.95 each. This equity raise represents an 11.1% increase in Vulcan’s shares on issue and is priced at a discount to the theoretical ex-rights price and recent closing share price, reflecting a strategic balance between shareholder value and capital needs.

The entitlement offer is structured to include both institutional and retail shareholders, with clear timelines for subscription and shortfall bookbuilds. Vulcan’s shares were placed in trading halt to facilitate the institutional component, with trading expected to resume shortly after.

Operational Synergies and Future Prospects

Roofing Industries’ unique business model, featuring local owner-operators with equity stakes, aligns well with Vulcan’s approach to empowering regional management and driving local growth. Vulcan plans to maintain this structure, leveraging the strong service mindset and financial incentives of these operators to enhance shareholder value.

Moreover, the acquisition opens significant cross-selling opportunities between Vulcan’s existing customer base and Roofing Industries’ network, potentially accelerating revenue growth. Vulcan expects the transaction to be earnings per share accretive in FY25, even before considering synergies or transaction costs, signaling confidence in the deal’s financial benefits.

Conditions and Next Steps

The transaction remains subject to customary conditions, including restructuring steps, approvals, lease arrangements, and the absence of material adverse changes. Completion is anticipated in the second quarter of FY26, with Vulcan providing updates at its annual shareholder meeting in October 2025.

As Vulcan prepares to welcome Roofing Industries into its fold, the market will be watching closely how this acquisition reshapes the competitive landscape in New Zealand’s steel roofing and cladding industry.

Bottom Line?

Vulcan’s bold expansion into roofing sets the stage for growth, but integration and market response will be key.

Questions in the middle?

• How will Vulcan integrate Roofing Industries’ local owner-operator model with its existing operations?
• What synergies and cost savings can Vulcan realistically achieve post-acquisition?
• How will the equity raise impact Vulcan’s share price and shareholder composition in the near term?