Toyota Tsusho America, Inc. (TAI), the U.S. subsidiary of Japan’s Toyota Tsusho Corporation, has announced a definitive agreement to acquire Radius Recycling in a deal valued at approximately $1.34 billion. Under the terms of the agreement, TAI will pay $30 per share in cash for all outstanding shares of Radius Recycling, representing a premium of nearly 120% over the stock’s last closing price.
Companies Involved
Toyota Tsusho America, Inc. (TAI)
TAI is the North American subsidiary of Toyota Tsusho Corporation, a member of the Toyota Group. The company operates as a global trading and supply chain specialist, engaging in a diverse range of businesses, including metals, automotive, chemicals, and electronics. TAI’s expertise lies in facilitating international trade and providing integrated solutions across various industries.
Radius Recycling
Formerly known as Schnitzer Steel Industries, Inc., Radius Recycling is one of North America’s largest manufacturers and exporters of recycled metal products. Founded in 1906, the company rebranded in July 2023 to better reflect its focus on metal recycling and its role in the circular economy.
With operations in over 100 communities across North America, Radius Recycling processes and supplies recycled metals to customers worldwide. The company has been recognized for its sustainability efforts, being named the world’s most sustainable company by Corporate Knights in 2023.
Strategic Implications of the Acquisition
The acquisition aligns with Toyota Tsusho’s strategic objectives to enhance its capabilities in the recycling sector and strengthen its position in the circular economy. By integrating Radius Recycling’s extensive metal recycling operations, TAI aims to leverage advanced recycling technologies and expand into the automotive market, capitalizing on Radius’s experience in the sector.
This move is expected to provide TAI with a robust platform to meet the increasing demand for recycled metals, driven by the global shift toward low-carbon technologies such as electric vehicles and renewable energy systems.
For Radius Recycling, the merger offers access to Toyota Tsusho’s financial strength and global network, facilitating further expansion and innovation in recycling processes. The collaboration is anticipated to enhance recycling rates and support sustainability initiatives across various industries, contributing to global carbon reduction efforts.
Financial Details and Closing Timeline
The transaction, valued at approximately $1.34 billion, is expected to close in the second half of 2025, subject to regulatory approvals and customary closing conditions. Goldman Sachs & Co. LLC is acting as the lead financial advisor to Radius Recycling, with J.P. Morgan Securities LLC serving as co-advisor. Mizuho Securities Co., Ltd. is advising Toyota Tsusho America.
This acquisition signifies a strategic move by Toyota Tsusho to bolster its recycling capabilities and underscores the growing importance of sustainable practices in the global economy.