FalconPoint Partners Expands Portfolio with Strategic SMS Acquisition

On August 26, 2025, FalconPoint Partners, a prominent private equity firm focused on North American middle-market investments, announced the acquisition of SMS, a high-growth industrial services provider. This strategic investment, valued at $500 million, is aimed at propelling SMS's growth trajectory and expanding its market presence in the industrial sector.

Founded in 2008, SMS has swiftly established itself as a leader in offering essential outsourced services, particularly site environmental services and scrap management, targeting steel mills across the United States, Europe, and South America. Moreover, the firm specializes in marine vessel decommissioning services for the U.S. Maritime Administration and other commercial stakeholders. Under the leadership of CEO Jeremy Kirchin, who joined SMS in 2016, the company has been able to build a solid reputation rooted in its commitment to quality and client satisfaction.

FalconPoint's investment in SMS underscores its strategy of fostering companies that provide crucial services across essential sectors. This acquisition is expected to amplify SMS's capabilities by enhancing its service offerings and integrating modern technological solutions, thereby facilitating substantial growth in both existing and new customer segments.

Russ Gehrett, Founder and Managing Partner at FalconPoint, expressed enthusiasm for the partnership, noting, "This collaboration arrives at a crucial juncture for the global steel industry, as the resurgence in manufacturing within the U.S. and Europe catalyzes significant investments in steel production capabilities."

In light of current economic trends and supply chain initiatives, SMS is well-positioned for growth. Andrew Singer, Co-founder and Chief Investment Officer at FalconPoint, highlighted SMS's unique position within the sector, stating, "SMS is a singular player in this sector, driving industry-leading growth while also investing meaningfully in its sustainability practices and safety infrastructure. This acquisition represents a tremendous opportunity to invest in the qualities that have made SMS a unique, high-performing business."

The partnership is not just about capital; it will leverage FalconPoint's operational expertise to bolster SMS's service offerings and improve overall performance. Kirchin commented, "From day one, SMS has driven delivery of best-in-class steel mill services and marine decommissioning capabilities. Our collaboration with FalconPoint enhances our capacity to invest in our customer operations, strengthening our commitment to integrity, safety, and quality."

The acquisition encompasses a carve-out of various operational segments of Scrap Metal Services LLC, continuing FalconPoint's legacy of recognizing and executing value-creating investment opportunities. The financial advisory roles for this transaction were handled by Moelis & Company LLC for FalconPoint and Headwall Partners LLC for Scrap Metal Services LLC, with legal representation by Paul, Weiss, Rifkind, Wharton & Garrison LLP and Levenfeld Pearlstein, LLC, respectively.

About FalconPoint Partners

FalconPoint Partners is a private equity firm that focuses on investing in mid-market companies within the business services and industrial sectors across North America. The firm utilizes its extensive network and a partnership-driven approach to identify transformative growth opportunities in businesses that deliver mission-critical products and services.

About SMS

SMS is recognized as a leading provider of outsourced steel mill services, offering a wide range of solutions including environmental site services, scrap management, raw materials handling, and marine vessel decommissioning. Since its foundation, SMS has prioritized the cultivation of long-term customer relationships, thereby ensuring reliability and efficiency in its service delivery. For more information, visit smsmill.com.