Toyota Tsusho America bets big on recycling with $1.34 billion Radius acquisition

On March 13, 2025, Radius Recycling, Inc. announced that it had entered into a definitive merger agreement with Toyota Tsusho America, Inc. (TAI), the US subsidiary of Toyota Tsusho Corporation. Under the terms of the agreement, TAI will acquire all outstanding shares of Radius for $30.00 per share in cash, representing a premium of approximately 115 per cent over Radius’ closing share price as of March 12, 2025, and a 102 per cent premium over the 90-day volume-weighted average share price (VWAP). The implied total enterprise value of the transaction, including net debt, is approximately $1.34 billion.

Image credit: Radius Recycling website

Following the completion of the transaction, Radius will continue to operate under its current name from its headquarters in Portland, Oregon, maintaining its existing leadership, teams, operational facilities, strategy, and brand portfolio.

According to Radius Recycling, the transaction unites two industry leaders committed to advancing the circular economy by enhancing recycling efforts and minimising waste across the industrial, manufacturing, and retail sectors.

Radius Recycling purchases all grades of ferrous and nonferrous metals. The nonferrous category includes a wide range of aluminium products such as cans, rims, siding, sheets, coils, electric motors, electrical components, wiring, insulated wire, irony aluminium (including lawn furniture), radiators, and more.

The North American recycler of ferrous and nonferrous metals with 54 operating facilities across 25 states, Puerto Rico, and Western Canada added that for over a century, Radius has been at the forefront of supplying recycled materials and products to customers across North America and globally. Over the years, the company has broadened its platform to include cutting-edge metals recovery technologies, its signature Third Party Recycling (3PR™) services, Pick-N-Pull auto recycling and used parts retail stores, and the Cascade electric arc furnace and rolling mill in Oregon.

TTC, an affiliate of the Toyota Group, is a leading Japanese trading company headquartered in Nagoya and Tokyo, boasting approximately $65 billion in global revenue and a workforce of 70,000 employees worldwide. Like Radius, TTC is a recognised leader in metals and automotive recycling, with a strong track record of strategic acquisitions and significant investments in the growth and development of its partner companies.

This partnership will allow Radius to leverage TTC’s financial strength, advanced recycling technologies, and deep expertise in delivering recycling solutions to the automotive sector, fostering continued innovation and growth.

Tamara L. Lundgren, Chairman and Chief Executive Officer of Radius Recycling, said, “We are excited to have reached this agreement with TTC, which builds on our longstanding relationship and provides us with increased opportunities for our talented team, broader products and services for our suppliers, customers and communities, and an expanded platform for our more than 100 operating sites while delivering significant immediate value to our shareholders.”

“Like Radius, TTC is a proven leader in metals and automotive recycling services and solutions, and we look forward to enhancing and expanding our offerings as part of their larger organisation while continuing to drive our strategy forward. I am grateful to the entire Radius team, whose hard work and determination have created a strong foundation for our Company, enabling us to embark on this next chapter in our history with TTC.”

Ichiro Kashitani, President and Chief Executive Officer of Toyota Tsusho Corporation (TTC), said, “We look forward to collaborating with Radius, whose position as one of North America’s leading recycling companies aligns with our efforts to holistically improve recycling across the supply chain.”

“Together, we will strengthen, amplify and grow Radius’ robust networks and integrated operations, better positioning Radius to meet the rapidly increasing demand to improve recycling rates and value recovery and deliver long-term benefits to employees, customers, suppliers, and communities.”

The transaction is anticipated to be finalised in the second half of the calendar year 2025, pending approval from Radius' shareholders, regulatory clearances, and satisfaction of other customary closing conditions.