Toyota Tsusho to acquire Radius Recycling for US$907 million

(PHOTO: Adobe Stock/Alexey Zarodov)

Under the terms of the agreement, Radius shareholders will receive US$30 per share, representing a 115% premium over the company’s closing share price on 12 March 2025 and a 102% premium over its 90-day volume-weighted average share price.

The total implied enterprise value of the transaction, including net debt, is approximately US$1.34 billion.

The transaction will be executed through a reverse triangular merger. Radius will continue to operate from its headquarters in Portland, Oregon, retaining its teams, operating facilities, brands and strategy.

Tamara L. Lundgren, Chairman and Chief Executive Officer of Radius, 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.”

Ichiro Kashitani, President and Chief Executive Officer of Toyota Tsusho, 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.”

He added: “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.”

Radius operates 54 recycling facilities across 25 US states, Puerto Rico and Western Canada, along with 50 Pick-N-Pull auto parts retail locations. The company also owns the Cascade electric arc furnace and rolling mill in McMinnville, Oregon.

According to Radius, the acquisition will support investment in its metals recycling, auto recycling, and steel production operations, and will expand its ability to partner with automotive OEMs and parts suppliers.

Toyota Tsusho has committed to honouring collective bargaining agreements and employee compensation and benefits programmes.

The transaction remains subject to shareholder approval, regulatory clearance, and other customary closing conditions. It is expected to close in the second half of calendar year 2025.