Recycled metal products maker Radius Recycling said on Thursday it had entered into a definitive merger agreement with Toyota Tsusho America, a U.S. subsidiary of Japanese trading house Toyota Tsusho Corp (TTC).
Toyota Tsusho America will acquire all shares of Radius for $30 per share in cash, representing a nearly 120% premium to the stock’s last close on Thursday and implying a total enterprise value of about $1.34 billion.
Shares of Radius Recycling had more than doubled to $28.52 in extended trading.
Radius seeks to gain from TTC’s financial strength and recycling technology and expand into the automotive market with its experience in the sector, following the merger, the company said in a statement.
The transaction is expected to close in the second half of 2025.
For Radius, Goldman Sachs is the lead financial advisor and J.P.Morgan Securities is the co-advisor. Mizuho Securities advised Toyota Tsusho.
Source: Reuters.com