Detailed Article:
In a bold and strategic move to strengthen its commitment to sustainability, Toyota Tsusho Corporation has entered into a definitive merger agreement to acquire Radius Recycling, a leader in North American metal recycling. The transaction is valued at approximately $1.34 billion, with Toyota Tsusho America, a U.S. subsidiary of TTC, offering $30.00 per share in cash for all outstanding shares of Radius Recycling, marking a premium of 115% over the company’s closing share price on March 12, 2025.
This acquisition, expected to close in the second half of 2025, promises to accelerate the development of the circular economy by advancing sustainable practices in the metals and automotive industries. Radius Recycling’s innovative technology and comprehensive recycling services will now be amplified by Toyota Tsusho’s global resources, further enhancing the recycling capabilities and waste reduction strategies within the industrial and automotive sectors.
A Legacy of Recycling Innovation: Radius Recycling
Radius Recycling, a major North American recycler of ferrous and nonferrous metals, has been operating for more than a century, providing a range of recycling services to customers across the United States, Canada, and Puerto Rico. The company’s integrated platform includes over 50 Pick-N-Pull branded auto recycling and used parts retail stores, 54 operating facilities across 25 states, and a fully integrated electric arc furnace and rolling mill in Oregon, which produces specialty products like rebar and wire rod.
Through its diverse operations, Radius Recycling has become an essential player in the sustainable supply chain, offering innovative metals recovery technologies, Third-Party Recycling (3PR™) services, and solutions designed to maximize material recovery and minimize waste. Radius has been at the forefront of the movement to reduce landfill waste and increase metal recycling in the automotive and manufacturing industries.
Toyota Tsusho: A Global Leader in Sustainability
Toyota Tsusho, a $65 billion revenue global trading company based in Japan, is a subsidiary of Toyota Group. With over 70,000 employees worldwide, TTC has a proven track record in sectors such as metals, automotive recycling, green infrastructure, and supply chain solutions. The company has long been committed to advancing circular economy principles, particularly in reducing greenhouse gas emissions and promoting sustainable practices.
TTC’s acquisition of Radius Recycling is part of a broader strategic initiative to increase the use of recycling technologies, reduce waste across the supply chain, and further their ambitious sustainability goals. Toyota Tsusho has committed to halving its greenhouse gas emissions by 2030 and achieving carbon neutrality by 2050, positioning the company as a strong leader in the global drive toward a decarbonized society.
Strategic Alignment for a Circular Economy
The acquisition of Radius Recycling by Toyota Tsusho is a seamless strategic alignment between two entities that share a deep commitment to sustainability and environmental stewardship. By merging Radius’ extensive experience in the recycling sector with Toyota Tsusho’s global reach and financial strength, the deal is set to expand the reach of recycling services and elevate the overall industry standards for materials recovery.
One of the key objectives of this merger is to enhance the efficiency of recycling operations, particularly in the automotive sector. Toyota Tsusho will be able to leverage Radius Recycling’s deep understanding of the recycling process, and together they will advance solutions aimed at increasing recovery rates of both ferrous and non-ferrous metals. This will contribute to reducing material waste and minimizing the environmental impact of industrial manufacturing, as well as optimizing material flows in the global supply chain.
Key Benefits for Radius Recycling
1. Financial Strength and Investment: With Toyota Tsusho’s backing, Radius Recycling will have the financial resources to accelerate its growth and expand its services. This includes investments in cutting-edge recycling technologies, which will further enhance its ability to recover metals more efficiently and reduce the amount of waste sent to landfills.
2. Expansion of Service Offerings: Radius will benefit from expanded market access and an enhanced product offering, particularly with Toyota Tsusho’s extensive network of automotive Original Equipment Manufacturers (OEMs) and suppliers. This opens up new opportunities for Radius to partner with metal consumers and broaden its customer base. The transaction also allows Radius to diversify its operations into additional sectors of the supply chain, including green infrastructure and digital solutions for recycling.
3. Strengthened Operations: Toyota Tsusho’s expertise in the automotive and manufacturing industries will bring a wealth of knowledge and operational improvements. Radius Recycling will be able to leverage these insights to optimize its facilities and integrate new technologies into its operations, enhancing its competitiveness in the recycling market.
4. Commitment to Employees: Toyota Tsusho is known for its dedication to creating a positive work environment and supporting its employees. As part of the deal, TTC has committed to honoring all collective bargaining agreements and ensuring that employees of Radius Recycling retain their compensation, benefits, and job security. TTC's ethical business practices and focus on environmental sustainability align well with Radius’ culture of integrity and workforce development.
5. Community Engagement and Legacy: Radius Recycling has been a key community partner in the regions where it operates, particularly in Portland, Oregon. TTC has committed to maintaining Radius’ community engagement initiatives, such as local workforce development, environmental education, and disaster recovery efforts. The company’s commitment to fostering strong relationships with local communities will remain unchanged post-acquisition.
Impact on the Global Recycling Industry
This merger is poised to have a significant impact on the global recycling industry. The expanded resources and expertise provided by Toyota Tsusho will allow Radius Recycling to enhance its metal recovery technologies and recycling processes, setting a new benchmark for the industry. As the demand for sustainable materials grows across the globe, this collaboration will provide an integrated, environmentally conscious solution for businesses seeking to reduce their carbon footprint and optimize their supply chains.
In addition, the merger strengthens both companies’ positions in the automotive recycling sector, where increasing pressure to reduce waste and improve recycling rates is driving innovation. By investing in sustainable practices and advanced recycling technologies, the partnership will play a pivotal role in shaping the future of the global circular economy.
Transaction Value and Financial Considerations
The acquisition agreement outlines a total enterprise value of approximately $1.34 billion, including net debt. The $30.00 per share purchase price represents a premium of about 115% over Radius’ closing share price as of March 12, 2025, and an approximate 102% premium over the 90-day volume-weighted average share price (VWAP). This generous premium reflects the confidence that Toyota Tsusho has in Radius’ future growth prospects and its commitment to driving sustainability across industries.
Approvals and Timeline
The transaction is expected to close in the second half of 2025, subject to customary shareholder approvals and regulatory clearances. This timeline reflects the necessary steps to ensure a smooth integration process between the two companies, which will enable Radius Recycling to continue its operations and serve its customers seamlessly during the transition.
Key Takeaways:
• Acquisition Details: Toyota Tsusho to acquire Radius Recycling for $30.00 per share in cash, a premium of approximately 115% over the March 2025 share price.
• Strategic Objectives: The merger enhances TTC's circular economy initiatives, focusing on improving recycling rates and sustainability in the automotive and metal industries.
• Operational Continuity: Radius Recycling will maintain its headquarters in Portland, Oregon, and retain its brands, workforce, and operational facilities post-acquisition.
• Technological Advancements: Toyota Tsusho’s financial support and global expertise will enable Radius to invest in advanced recycling technologies and operational improvements.
• Employee Commitment: TTC will honor collective bargaining agreements and ensure that Radius employees maintain their compensation and benefits.
• Sustainability Goals: Both companies share a commitment to reducing landfill waste, improving recycling efficiency, and contributing to a decarbonized future.
• Expansion Opportunities: The merger opens up new opportunities for Radius to collaborate with automotive OEMs and suppliers, expanding its customer base and diversifying its services.
• Transaction Value: The total enterprise value of the transaction, including net debt, is approximately $1.34 billion.
• Timeline for Completion: The deal is expected to close in the second half of 2025, subject to regulatory approvals and shareholder consent.
This merger marks a pivotal moment in the recycling industry, enhancing both Radius Recycling’s position as a leader in metal recycling and Toyota Tsusho’s goal of building a more sustainable and circular economy. The acquisition will not only bring significant growth opportunities but also help address the global challenge of reducing waste and increasing recycling rates.
