Toyota Tsusho America to acquire Radius Recycling for $1.34 billion

Toyota Tsusho America, based in New York City, is a subsidiary of Toyota Tsusho Corp. (TTC), an affiliate of the Japanese trading company Toyota Group.

On Thursday, the companies announced that Radius shareholders would receive $30 per share in cash upon the deal’s closing, which is expected in the second half of this year. The purchase price represents a 115% premium to Radius’ closing share price on March 12, the day before the sale was announced.

According to Radius, the deal will allow it to benefit from TTC’s relationships with OEMs and Tier 1, 2, and 3 suppliers.

Radius will remain headquartered in Portland, Ore., with its teams, brands, and legacy preserved, TTC said. It will honor collective bargaining agreements and employee contracts, it added.

“TTC is committed to investing in the development of Radius’ infrastructure and manufacturing capabilities across its operating sites,” TTC said, as it “recognizes the importance of innovative, closed-loop solutions to improving supply chains, manufacturing activity, and the environment.”

“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,” said Tamara Lundgren, chairman and CEO of Radius.

“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,” added TTC President and CEO Ichiro Kashitani.