Radius Recycling Lands Merger Deal At 115% Premium, Stock Skyrockets

Radius Recycling, Inc. (NASDAQ:RDUS) shares are shooting higher premarket on Friday. On Thursday, the company disclosed a definitive merger agreement with Toyota Tsusho America, Inc. for $30.00 per share in cash.

The acquisition price offers around a 115% premium over Radius’ closing share price, and around a 102% premium over the 90-day volume-weighted average share price (VWAP) on March 12, 2025.

The total implied enterprise value of the transaction, including net debt, is approximately $1.34 billion.

The transaction is expected to close in the second half of 2025, pending approval by Radius’ shareholders and other customary closing conditions.

Toyota Tsusho, which is the U.S. subsidiary of Toyota Tsusho Corporation (TTC) expects Radius to become a consolidated subsidiary during the next fiscal year (fiscal year ending March 31, 2026).

Radius anticipates leveraging TTC’s strong connections with automotive OEMs and suppliers at all tiers, which will open up more opportunities to collaborate with metals consumers.

This expanded customer base will strengthen Radius’ operational platform, enabling it to invest in facilities, drive growth, and offer enhanced products and services.

Tamara L. Lundgren, Radius’ Chairman and Chief Executive Officer, said, “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,” 

As of December 31, 2024, TTC’s cash and cash equivalent stood at JPY860 billion (around $5.78 billion).

In January, Radius reported first-quarter revenue of $656.54 million, missing the consensus of $665.6 million, and adjusted loss per share of $1.33, missing the consensus loss of $0.10.

Price Action: RDUS shares are up 109.0% at $28.55 premarket at the last check Friday.

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