Radius Strikes Major Merger with Toyota Tsusho America
Deal News | Mar 14, 2025 | EIN
Radius Recycling, Inc., a U.S.-based company, announced a definitive merger agreement with Toyota Tsusho America, Inc. The deal, valued at approximately $1.34 billion including net debt, offers shareholders $30 per share, representing a 115% premium over the company’s closing share price. The transaction is set to close in the second half of 2025, pending shareholder approval and other customary conditions. Toyota Tsusho America intends for Radius to become a consolidated subsidiary by the fiscal year ending March 31, 2026. The merger aims to leverage Toyota Tsusho's strong connections in the automotive industry, opening up new collaboration opportunities and expanding Radius's customer base. Despite recent lower-than-expected earnings, Radius anticipates significant strategic growth under this agreement. As of the end of 2024, Toyota Tsusho reported significant cash reserves of approximately $5.78 billion.
Sectors
- Recycling and Materials Management
- Automotive Industry
- Merger and Acquisition (M&A)
Geography
- United States – Radius Recycling is a U.S.-based company entering a merger with Toyota Tsusho America, the U.S. subsidiary of a Japanese corporation.
- Japan – Toyota Tsusho America is a subsidiary of Toyota Tsusho Corporation, which is based in Japan.
Industry
- Recycling and Materials Management – Radius Recycling operates in the recycling and materials management sector, pivotal to the deal and its strategic growth plans in collaboration with Toyota Tsusho.
- Automotive Industry – Toyota Tsusho America is part of Toyota Tsusho Corporation, a significant player in the automotive industry, relevant to the merger’s strategic benefits.
- Merger and Acquisition (M&A) – The article discusses a definitive merger agreement, making M&A a relevant sector classification.
Financials
- $30.00 per share – The cash offer per Radius share under the merger agreement.
- $1.34 billion – The total implied enterprise value of the merger transaction.
- 115% premium – The premium offered over Radius's closing share price in the merger deal.
- $656.54 million – First-quarter revenue reported by Radius in January.
- $5.78 billion – Toyota Tsusho’s cash and cash equivalents as of December 31, 2024.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Radius Recycling, Inc. | Target Company | Company | A U.S.-based recycling company involved in the merger to be acquired by Toyota Tsusho America. |
| Toyota Tsusho America, Inc. | Bidding Company | Company | A U.S. subsidiary of Toyota Tsusho Corporation, acquiring Radius Recycling. |
| Tamara L. Lundgren | Chairman and CEO | People | Chairman and CEO of Radius Recycling, commenting on the strategic benefits of the merger. |
| Toyota Tsusho Corporation | Parent Company | Company | The Japanese parent company of Toyota Tsusho America. |