Radius Recycling to Be Acquired by Toyota Tsusho America for $1.34 Billion

Radius Recycling, Inc. announced that it has entered into a definitive merger agreement with Toyota Tsusho America, Inc. (TAI), a U.S. subsidiary of Toyota Tsusho Corporation (TTC). Under the terms of the agreement, TAI will acquire all shares of Radius for $30.00 per share in cash, representing an approximate 115% premium to Radius’ closing share price on March 12, 2025. The transaction is expected to close in the second half of 2025, subject to regulatory and shareholder approvals.

Radius Recycling, which was established in 1906, was originally known as Schnitzer Steel, named after one of Portland’s most influential families of the 20th century. The company, which rebranded as Radius in 2023, specializes in purchasing, processing, and exporting recycled steel. Headquartered in Portland, Oregon, Radius is a pioneer in the recycling of ferrous and nonferrous metals, with 54 facilities across 25 states and Canada. In addition to its metals recycling operations, Radius operates the Pick-N-Pull auto recycling business and an electric arc furnace and rolling mill in McMinnville, Oregon. The acquisition by Toyota Tsusho will enable Radius to expand its capabilities, increase its resources, and accelerate its efforts to meet the growing demand for recycling services across various sectors.

Toyota Tsusho, a global leader in metals and automotive recycling, is committed to advancing sustainability in the industry. With over 70,000 employees worldwide and a revenue of approximately $65 billion, Toyota Tsusho brings significant financial strength, advanced recycling technologies, and a vast network of relationships with automotive manufacturers and suppliers.

TTC’s President and CEO, Ichiro Kashitani, shared his enthusiasm about the partnership, “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. 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.”

Strengthening Radius’ Capabilities

The merger will provide Radius with the resources to further its strategic priorities, including investing in its metals recycling platform, expanding its Pick-N-Pull auto recycling business, and advancing its Third Party Recycling (3PR™) services. Radius will also benefit from TTC’s recycling technologies that seek to “increase the recovery of ferrous and nonferrous metals and reduce material going to landfills”.

The acquisition is seen as a strong opportunity for both companies to drive growth in the circular economy while continuing to provide value to shareholders, employees, and local communities.

“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,” said Tamara L. Lundgren, Chairman and CEO of Radius. “I am grateful to the entire Radius team, whose hard work and determination have created a strong foundation for our Company, enabling us to embark on this next chapter in our history with TTC.”

Radius noted that its headquarters will remain in Portland, Oregon, and the company’s operations, including its brands and employees, will be preserved. Toyota Tsusho is committed to maintaining local community engagement, fostering workforce development, and supporting environmental sustainability.

According to Radius, Goldman Sachs & Co. LLC is serving as lead financial advisor, J.P. Morgan Securities LLC is serving as co-advisor, and Simpson Thacher & Bartlett LLP is serving as legal counsel to Radius. Mizuho Securities Co., Ltd. is acting as financial advisor and White & Case LLP is serving as legal counsel to TTC.

This merger signifies a strategic step forward in creating a more sustainable and integrated recycling infrastructure, helping meet the growing demand for recycling solutions and furthering both companies’ commitment to reducing environmental impact.