Radius to be acquired by Toyota subsidiary

Portland, Oregon-based Radius Recycling has announced it is being acquired by Toyota Tsusho America Inc. (TAI), a subsidiary of Japan-based Toyota Tsusho Corp. (TTC) that itself is part of the larger Toyota Group.

Radius changed its name from Schnitzer Steel Industries Inc. in 2023, when it set aside the family name of Sam Schnitzer, who founded the metals recycling firm in 1906.

The company operates a network of scrap recycling and auto salvage facilities as well as one scrap-fed electric arc furnace (EAF) steel mill, which is in Portland.  

Radius Recycling has agreed to the transaction after experiencing six consecutive fiscal quarters of financial losses. During that time, the firm’s executives consistently have referred to challenging industry conditions as a factor.

The company says the definitive merger agreement it has entered into with TAI will see the latter firm acquiring all shares of Radius for $30 per share in cash, “representing an approximate 115 percent premium to Radius’ closing share price on March 12, 2025,” according to Radius.

Upon completion of the transaction, Radius says it will continue to operate from its current headquarters in Portland “with its teams, operating facilities, strategy and brands retained.”

States Radius, “The transaction brings together two companies dedicated to advancing the circular economy by increasing recycling and reducing waste across the industrial, manufacturing and retail sectors.”

Radius describes TTC as “a prominent Japanese trading company headquartered in Nagoya and Tokyo with approximately $65 billion in global revenue and 70,000 employees worldwide.”

The recycling firm also labels TTC as “a proven leader in metals and automotive recycling [with] a successful track record of acquisitions with meaningful investments in the growth and employees of those companies.”

In the United States, TTC and TAI operate a Kentucky-based subsidiary called Green Metals Inc. that has about 20 U.S. locations focusing on the collection and processing of recyclable metals generated at Toyota automotive and components manufacturing plants.

TAI also is a joint venture partner with St. Louis-based Alter Trading Corp. on the Altech Recycling plant, North Little Rock, Arkansas, designed to produce a high-purity shredded aluminum scrap grades that can be used to make new Toyota vehicle parts.

Radius says its sale to TAI and TTC will provide it with an opportunity to benefit from TTC’s financial strength, recycling technology and experience in providing recycling services to the automotive sector.

“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 and an expanded platform for our more than 100 operating sites while delivering significant immediate value to our shareholders,” says Tamara L. Lundgren, board chair and CEO of Radius.

“Like Radius, TTC is a proven leader in metals and automotive recycling services and solutions, and we look forward to enhancing and expanding our offerings as part of their larger organization while continuing to drive our strategy forward,” adds Lundgren.

Comments said Ichiro Kashitani, TTC’s president and CEO, “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.”

Radius says that with TTC’s financial support, it will have a greater ability to invest in the continued development of its metals recycling and sorting platform, its Pick-N-Pull auto recycling business, its third party recycling services, and its EAF mill in Portland.

The Oregon-based firm says it also expects to benefit from TTC’s relationships with automotive OEMs and Tier 1, 2 and 3 suppliers, enabling Radius to “expand its opportunities to partner with metals consumers.”

“TTC is committed to investing in the development of Radius’ infrastructure and manufacturing capabilities across its operating sites, with the goal of growing and diversifying Radius’ platform over the long-term,” says Radius.

Radius says it expects the transaction to close in the second half of this year, subject to approval by Radius’ shareholders, regulatory approvals and other closing conditions.

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.