Radius Recycling to be Acquired by Toyota Tsusho Subsidiary for Accelerated Growth
Deal News | Mar 13, 2025 | Globenewswire
Radius Recycling, a leading North American recycler, has entered into a definitive merger agreement with Toyota Tsusho America, a U.S. subsidiary of the prominent Japanese trading company, Toyota Tsusho Corporation. Toyota Tsusho America will acquire all shares of Radius Recycling for $30.00 per share in cash, a significant premium over the current stock value, representing a total enterprise value of approximately $1.34 billion. This acquisition aims to leverage Toyota Tsusho's financial strength and expertise in recycling technology and supply chain management to enhance and expand Radius Recycling's operations. Post transaction, Radius will retain its headquarters in Portland, Oregon, preserving its brand identity and workforce under the new corporate umbrella. The strategic acquisition is expected to close in the second half of 2025, subject to customary shareholder and regulatory approvals.
Sectors
- Recycling
- Automotive
- Merger and Acquisition
Geography
- United States – Radius Recycling, headquartered in Portland, Oregon, and Toyota Tsusho America, a U.S. subsidiary, signify a substantial U.S. presence in the context of this acquisition.
- Japan – Toyota Tsusho Corporation, headquartered in Nagoya, Japan, is a major player in this acquisition, reflecting the cross-border aspect of the deal.
Industry
- Recycling – The article discusses the acquisition of Radius Recycling, a company heavily involved in industrial and auto recycling, by Toyota Tsusho America. This highlights the significance of recycling as an industry, particularly in terms of growth and resilience.
- Automotive – Toyota Tsusho Corporation, a key player in the automotive sector, is acquiring Radius Recycling, emphasizing the interconnection between the automotive industry and recycling services, especially through metal recovery and supply chain dynamics.
- Merger and Acquisition – The article focuses on the merger agreement between Radius Recycling and Toyota Tsusho America, placing it squarely within the merger and acquisition sector as it outlines strategic investment plans and shareholder value delivery.
Financials
- $30.00 per share – The cash price offered by Toyota Tsusho America to acquire Radius Recycling shares, representing a 115% premium over closing share prices.
- $1.34 billion – The implied total enterprise value of the transaction, including net debt.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Radius Recycling, Inc. | Target Company | Company | A North American leader in ferrous and nonferrous metals recycling, affiliated with the Pick-N-Pull brand, engaged in innovative recycling methods. |
| Toyota Tsusho America, Inc. | Bidding Company | Company | A U.S. subsidiary of Toyota Tsusho Corporation, engaged in various industries including metals and automotive recycling. |
| Toyota Tsusho Corporation | Parent Company of Bidding Company | Company | A prominent Japanese trading company and part of the Toyota Group known for its global business operations. |
| Goldman Sachs & Co. LLC | Financial Advisor to Radius | Company | Serving as lead financial advisor to Radius for the transaction. |
| J.P. Morgan Securities LLC | Co-Financial Advisor to Radius | Company | Providing co-advisory services to Radius in the deal. |
| Simpson Thacher & Bartlett LLP | Legal Advisor to Radius | Company | Acting as the legal counsel for Radius in the merger agreement. |
| Mizuho Securities Co., Ltd. | Financial Advisor to TTC | Company | Providing financial advisory services to Toyota Tsusho Corporation for the acquisition. |
| White & Case LLP | Legal Advisor to TTC | Company | Serving as legal counsel for Toyota Tsusho Corporation in this transaction. |