FalconPoint Partners, a private equity firm focused on investing in North American middle market companies in the business services and industrials sectors, has acquired SMS, a high-growth industrial services business, committing $500m to support the platform’s growth.
Founded in 2008, SMS is a provider of outsourced services, including site environmental services and scrap and slag management, to steel mills within the United States, Europe, and South America; SMS also provides marine vessel decommissioning services to the United States Maritime Administration along with other commercial maritime companies.
The business is led by Chief Executive Officer Jeremy Kirchin, who joined SMS in 2016.
FalconPoint will provide capital and expertise to build on SMS’s established strengths, including a high-touch service model and industry-leading safety record, while enabling the business to invest meaningfully in growth drivers – including expanded commercial capabilities, modernised technology infrastructure, and an actionable pipeline of acquisition targets.
The acquisition is a carve-out of various operating segments of Scrap Metal Services, extending FalconPoint’s track record of creating value through successfully identifying and executing on complex carve-outs and investment opportunities.
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.
