FalconPoint Acquires SMS in $500 Million Carve-Out
September 3, 2025|John McNulty
FalconPoint Partners has acquired SMS, a steel mill services and industrial decommissioning platform, in a $500 million carve-out from Scrap Metal Services.
Scrap Metal Services provides outsourced industrial support to steel mills, including site environmental services, scrap and slag management, and raw materials handling and processing for mills across the United States, Europe, and South America. In addition, the business provides marine vessel decommissioning services for the U.S. Maritime Administration and commercial maritime customers.
Source: Scrap Metal Services
Scrap Metal Services is organized into divisions, including SMS Mill Services—which supports steel producers with material handling—and SMS Brownsville, which oversees ship dismantling and environmental remediation.
A milestone for the company came in 2012 with the acquisition of All Star Metals, which established its SMS Brownsville unit. In 2014, this unit began a two-year project for the USS Forrestal, the first U.S. aircraft carrier to be decommissioned and involving roughly 60,000 tons of material.
Source: Scrap Metal Services
Scrap Metal Services, led by CEO Jeremy Kirchin, was founded in 2005 by brothers Jeffry and Rick Gertler and is headquartered in Portage, Indiana, with more than 20 facilities across the U.S., Europe, and Mexico.
“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,” said Mr. Kirchin. “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.”
“SMS is a singular player in this sector, driving industry-leading growth while also investing meaningfully in its sustainability practices and safety infrastructure,” said Andrew Singer, a co-founder and chief investment officer at FalconPoint. “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.”
FalconPoint makes control and minority investments in North American-based mid-market companies operating in the business services and industrial sectors. The New York City-based firm was founded in 2023 by Managing Partner Russ Gehrett. Prior to founding FalconPoint, Mr. Gehrett was a partner at Wynnchurch Capital, where he established and led the firm’s New York City office.
“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,” concluded Mr. Gehrett.
Moelis & Company was the financial advisor to FalconPoint and Headwall Partners was the advisor to Scrap Metal Services.
FalconPoint Partners has acquired SMS, a steel mill services and industrial decommissioning platform, in a $500 million carve-out from Scrap Metal Services.
“SMS is a singular player in this sector, driving industry-leading growth while also investing meaningfully in its sustainability practices and safety infrastructure,” said Andrew Singer, a co-founder and chief investment officer at FalconPoint. “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.”
