FalconPoint Partners has announced its acquisition of SMS, a dynamic and high-growth industrial services company.
To facilitate SMS’s further development, FalconPoint has committed a substantial investment of $500 million. This funding aims to support the company’s exceptional growth trajectory, enhance its market share, and enable the creation and modernization of customer sites, which will be equipped with state-of-the-art technology and equipment.
Founded in 2008, SMS has emerged as a leading provider of outsourced services across various sectors, delivering vital services such as site environmental management and scrap and slag handling specifically for steel mills in the United States, Europe, and South America. In addition to these services, SMS also provides marine vessel decommissioning services, catering to the United States Maritime Administration and diverse commercial maritime companies.
The firm is led by a seasoned management team with extensive industry experience, headed by Chief Executive Officer Jeremy Kirchin, who has been with the company since 2016.
This strategic investment underscores FalconPoint’s unwavering commitment to investing in businesses that offer mission-critical products and services within essential sectors, both domestically and internationally. FalconPoint aims to utilize its financial resources and industry expertise to support SMS, bolstering its already established strengths, which include a high-touch service model that prioritizes customer relationships and an industry-leading safety record.
The investment provides SMS with the opportunity to make meaningful advancements in its growth strategies, including the expansion of its commercial capabilities, modernization of its technological infrastructure, and the development of a robust pipeline of potential acquisition targets.
Notably, this acquisition represents a carve-out of various operating segments from Scrap Metal Services LLC. It expands FalconPoint’s proven track record of successfully identifying opportunities for value creation through the effective management and execution of intricate business transformations. By utilizing its extensive industry experience, FalconPoint is well-positioned to drive SMS’s future success and enhance its impact within the industrial services landscape, carve-outs, and investment opportunities.
Advisors: Moelis & Company served as financial advisor to FalconPoint, and Paul, Weiss, Rifkind, Wharton & Garrison served as legal advisor to FalconPoint. Headwall Partners served as financial advisor to Scrap Metal Services and Levenfeld Pearlstein served as legal advisor to Scrap Metal Services.
KEY QUOTES:
“This partnership comes at a pivotal time for the global steel industry, as manufacturing reshoring and supply chain initiatives drive significant investment in steel production capabilities across the U.S. and Europe.”
Russ Gehrett, Founder and Managing Partner at FalconPoint
“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, while leveraging our capital and operational expertise to support the business in capturing significant upside potential. We look forward to working closely with Jeremy and the entire team at SMS to continue to create long-term value for customers, employees, and investors.”
Andrew Singer, Co-founder and Chief Investment Officer at FalconPoint
“Since day one, SMS has been motivated by the excellence and expertise necessary to reliably deliver best-in-class steel mill services and marine decommissioning capabilities to our valued customers. I am extraordinarily proud of how we have delivered on that promise, reflected in SMS’ perfect customer retention record since the company’s founding. Our partnership with FalconPoint is the right next step for SMS, and I believe that together we are better positioned than ever to continue investing behind our customers’ operations and elevating our commitment to integrity, safety, and quality.”
Jeremy Kirchin
