US: Toyota Tsusho to acquire Radius Recycling to enhance recycling supply chain

Toyota Tsusho America, Inc. (TAI), a wholly-owned subsidiary of Toyota Tsusho Corporation (TTC), a leading Japanese trading and investment firm and a member of the Toyota Group, has entered into a definitive merger agreement to acquire Radius Recycling, a prominent US-based scrap car and metal recycling company headquartered in Portland, Oregon. Valued at approximately $907 million, the acquisition aims to strengthen the recycling supply chain for steel and non-ferrous metals in North America while supporting decarbonisation efforts in the manufacturing industry.

Before the acquisition, Toyota Tsusho held no shares in Radius Recycling. Currently, Toyota Tsusho is set to acquire 30,249,714 shares, representing 100% of the voting rights in Radius. The total value of the acquisition is approximately JPY 134.4 billion, based on the number of shares outstanding as of 11 March 2025.

It is worth noting that Radius owns an electric furnace in Oregon and produces steel products using scrap as raw material. In CY’24, Radius processed 4.57 million tonnes (mnt) of ferrous recycled metal and 0.34 mnt of non-ferrous recycled metal, including 0.67 mnt of end-of-life vehicles and 3.87 mnt of used auto parts. It manufactured and sold 0.46 mnt of finished steel products.

This acquisition will enable Radius to integrate its recycling technology with Toyota Tsusho’s expertise in creating a closed-loop supply chain, in alignment with the latter’s circulating vein business strategy and efforts to accelerate carbon neutrality.

The transaction is expected to be completed by CY’25 (ending 31 December 2025). The acquisition price offers a 115% premium to Radius’s closing share price on 12 March and a 102% premium over the 90-day average trading volume. The merger will involve Radius becoming a wholly owned subsidiary of Toyota Tsusho America (TAI), with the general meeting of Radius shareholders set for Q2CY’25.

Outlook

Radius is expected to become a consolidated subsidiary of Toyota Tsusho by FY’26 (ending 31 March, 2026). Toyota Tsusho is currently evaluating the impact on its consolidated performance and will promptly disclose any significant changes that require a public announcement.