Toyota Tsusho Corp. (TTC), headquartered in Nagoya, Japan, has agreed to acquire a 39.9 percent stake in the Germany-based company Scholz AG from the Scholz family.
TTC says the deal is expected to close in the second quarter of 2014 after it has negotiated agreements with the existing lenders of Scholz Group for continued support and after the deal has been cleared in relevant jurisdictions. Following the purchase, Toyota Tsusho says it will add members to Scholz’s board of directors.
Scholz Group, headquartered in Essingen, Germany, says it is one of the largest scrap metal recycling firms in the world based on transaction volume. The company has a global procurement network, including operations that handle end-of-life automobiles, in 26 countries, primarily in Europe.
The company has incurred significant debt following an expansion and acquisition plan it undertook over the past several years. More recently, Scholz Group has been restructuring and selling off noncore assets to reduce its debt.
TTC says its midterm plan targets a global expansion of its recycling business. The company adds that it seeks to be a significant player in the automobile recycling sector and has strived to develop an innovative business model.