Dual-listed steel group Vulcan said it signed a conditional deal to buy Australasia's 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 $215m and $270m in revenue, respectively, and $32m and $49m in EBITDA.

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.

"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."

The parties were still in a "formative stage" of their integration process.

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

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

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.

The company listed on the NZX and the ASX last November.

Ullrich employs more than 600 staff and operates in 43 locations across Australia and New Zealand.

Shares in Vulcan last traded at $9.25, up 15c from Thursday's close.