Acquisition · Metals recycling
Toyota Tsusho to buy Oregon metals recycler Radius Recycling for $1.34 billion
- Buyer
- Toyota Tsusho (via Toyota Tsusho America) (Nagoya)
- Target
- Radius Recycling, Portland, Oregon
- Value
- $907M equity ($30 per share); about $1.34B enterprise value
- Status
- Completed on July 10, 2025 (U.S. time).
- Date
- 2025-03-13
Toyota Tsusho agreed to acquire Nasdaq-listed Radius Recycling, one of North America's largest ferrous and nonferrous metal recyclers, through a reverse triangular merger by its U.S. unit. Shareholders receive $30 per share in cash, valuing the equity at about $907 million and the enterprise at about $1.34 billion. Radius keeps its Portland headquarters.
Why it matters
Recycled steel and metals are central to automakers' decarbonization targets, and the deal gives Toyota Tsusho scrap supply and processing capacity in North America. It extends the trading house's circular-economy strategy into the U.S. as tariffs make local material sourcing more valuable.
The deal
The $30 cash price was about 115% above Radius's closing share price on March 12, 2025, the day before the agreement was signed, and about 102% above its 90-day volume-weighted average price. Radius shares rose more than 100% in pre-market trading on March 14 after the announcement.
Goldman Sachs was Radius's lead financial adviser and provided a fairness opinion, with J.P. Morgan as co-adviser and Simpson Thacher & Bartlett as legal counsel. Mizuho Securities advised Toyota Tsusho, with White & Case as its legal counsel. The merger agreement set a termination fee of about $27.2 million payable by Radius in certain circumstances.
About Radius Recycling
Radius, formerly Schnitzer Steel Industries, recycles metal scrap and end-of-life vehicles and makes finished steel products. At the time of the deal it operated 54 facilities across 25 U.S. states, Puerto Rico and western Canada, plus 50 Pick-N-Pull self-service used auto parts stores. It also owns an electric arc furnace steel mill in Oregon.
The company was under pressure before the sale. For the fiscal year ended August 31, 2024, revenue fell about 5% to roughly $2.74 billion, adjusted EBITDA dropped to $29 million from $144 million, and it posted a net loss of $266 million, largely due to a $216 million goodwill impairment.
Strategy
Toyota Tsusho said it aims to combine Radius's collection and processing network with its own model of closed-loop supply chains built around recycled materials, to strengthen the supply of high-quality recycled resources in North America and support decarbonization by manufacturers. Radius said its management, facilities, strategy and brands would be retained under the new owner.
Approvals and timeline
The Hart-Scott-Rodino waiting period ended in May 2025, and Radius shareholders approved the merger at a special meeting on June 5, 2025. The parties also filed a joint voluntary notice with the Committee on Foreign Investment in the United States, which notified them on July 3, 2025 that clearance had been obtained. With all regulatory approvals in hand, the merger closed on July 10 and Radius was delisted from Nasdaq.
Sources
Kakehashi M&A News home
