Toyota Tsusho buys Scholz AG stake in Germany

Japan's Toyota Tsusho acquires a 39.9% stake in the loss-making Scholz AG group from the Scholz family to financially put the German Metal Recycling Group on a solid footing. In Germany, Scholz is one of several recycling companies capable of providing a complete recycling system through a wide range of bot methods.

Toyota Tsusho, part of the Toyota Group, plans to close the deal in the second quarter following final negotiations with Scholz's creditors. The Japanese trading company is going to send representatives to Scholz's board of directors after the acquisition of the shares. Scholz AG is the world's second largest scrap recycling company. The company has its own global sourcing network for recyclable materials such as end-of-life vehicles.

The olts were saddled with 1.1 billion euros in debt at the end of 2013 and were hit hard by a weak market. The Group has now embarked on restructuring after a period of rapid growth and is selling off small non-core operations and closing some properties. Toyota Tsusho declined to clarify how much it paid the owners of the family-owned company Scholz, ahead of a Chinese rival's bid.

Scholz AG aims to reduce its debt to € 700 million, most of which is in bank loans. Scholz suffered an after-tax loss of € 314 million in 2013 on revenues of € 3.5 billion. Profit before interest, taxes, depreciation and amortization was € 125 million. The group has a direct interest in 50 companies and an indirect interest in numerous subsidiaries, which are headquartered in 500 locations throughout Europe.