Radius agrees to takeover offer

One of North America’s biggest steel recyclers, Radius Recycling, is set to be acquired by Toyota Tsusho America Inc (TAI), a US subsidiary of the Toyota Tsusho Corporation (TTC) of Japan, itself part of the huge Toyota Group.

Radius has announced the deal by which TAI will acquire all Radius shares for US$ 30 (EUR 27.68) per share in cash, representing a 115% premium to Radius’ closing share price on 12 March. The value of the transaction, including net debt, is put at US$ 1.34 billion.

No change

It says Radius will continue to operate from its current headquarters in Portland, Oregon with its teams, operating facilities, strategy, and brands retained. Until July 2023, Radius was Schnitzer Steel Industries, having been founded in Portland in 1906.

The company recycles ferrous and non-ferrous metals with 54 operating facilities across 25 US states, Puerto Rico, and Western Canada. Its electric arc furnace and rolling mill located in McMinnville, Oregon is vertically integrated with its Pacific Northwest metals recycling operations and produces rebar, wire rod, and other specialty products.

It also has 50 stores operating across the US and Western Canada under its Pick-N-Pull brand selling used parts from salvaged vehicles.

Opportunities

A news release says: ‘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 ceo Tamara L. Lundgren says the acquisition builds on a longstanding relationship and provides ‘increased opportunities for our talented team, broader products and services for our suppliers, customers and communities’.

‘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 organisation while continuing to drive our strategy forward.’