Dive Brief:

• Toyota Tsusho, part of the Toyota Group, announced on Thursday it's acquiring Radius Recycling, an industrial metals recycler based in Portland, Oregon. Radius, formerly known as Schnitzer Steel, operates more than 100 sites across 25 U.S. states, Puerto Rico and parts of Western Canada.
• The purchase price for the deal is roughly $907 million, according to a release from Toyota Tsusho. The buyer expects to complete the deal in the third quarter of this year.
• Toyota Tsusho plans to invest in Radius' business in North America, including its electric arc furnace mill in McMinnville, Oregon. Radius processed about 4.5 million long tons of ferrous recycled metal and 334,000 long tons of nonferrous recycled metal in 2024.

Dive Insight:

Founded in 1906, Radius is the second largest independent recycler in the U.S., according to investor materials from Toyota Tsusho. The company is focused on recycling end-of-life vehicles and metal scrap to manufacture recycled steel products like rebar. It also resells used car parts through its Pick-n-Pull used parts division.

The deal comes as U.S. manufacturers have grown increasingly wary of tariffs’ impact on material prices, including for steel. Metal recyclers are seeing higher scrap metal prices and larger product orders in this environment, experts say.

Radius Recycling reported revenue of $2.74 billion in August 2024, down from a high two years prior of $3.49 billion. Its stock price similarly reached a high in 2022 before following a multiyear decline to the present day. The value of Toyota Tsusho's acquisition will be a 115% premium on Radius' stock price as of market close on March 12, which was $30.

"We are excited to have reached this agreement with TTC," Radius Chairman and CEO Tamara Lundgren said in a statement. “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."

Toyota Tsusho said the deal would allow it to expand its circular economy strategies for materials. The company has had sustainability goals for decades and pursued alternative uses for materials like automobile shredder residue generated during the disposal process, which is otherwise destined for disposal.

Toyota Tsusho plans to harness Radius' collection network to expand its ability to supply automotive manufacturers with "green steel" made from recycled metal. It also anticipates increasing its collection volume of precious metals from catalytic converters and creating a closed loop recycling platform for batteries.

“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,” Ichiro Kashitani, president and CEO of Toyota Tsusho, said in a statement, adding that the company aims to “amplify and grow Radius’ robust networks and integrated operations.”