Photo courtesy of Scrap Metal Services LLC
FalconPoint Capital Partners LLC, a New York-based equity investment firm, has acquired the Steel Mill Services and Shipbreaking divisions of Burnham, Illinois-based Scrap Metal Services LLC (SMS).
“This transaction is a win-win for both Scrap Metal Services and FalconPoint,” says Jeff Gertler, board chair and part of the family that founded SMS. “The Steel Mill Services and Shipbreaking businesses will advance under FalconPoint’s growth strategy, while the core ferrous and nonferrous scrap processing business of Scrap Metal Services, which will remain under the ownership of my brother Rick and me, will be positioned with increased financial flexibility to support its growth.”
Delray Florida-based investment banking firm Headwall Partners LLC, which specializes in metals and mining, advised SMS in the transaction process.
“We are incredibly grateful to Headwall Partners for its guidance throughout this process,” says Jeremy Kirchin, CEO of SMS. “The Headwall team’s deep metals sector expertise, strong industry relationships and relentless attention to detail were instrumental in helping us successfully complete this complex transaction.”
“Headwall is proud to have advised Scrap Metal Services on achieving this important milestone,” says Peter J. Scott, founder and managing partner of that firm. “We commend the founders, Jeff and Rick Gertler, for their long-term vision in building Scrap Metal Services, and also Jeremy Kirchin, Chris Merley, Felipe Gustavo, Keith Pyles and the entire SMS executive team for their leadership in executing the company’s growth strategy in building, growing and managing a profitable enterprise in a highly competitive marketplace. We are confident that the executive team will continue its excellent stewardship of the Steel Mill Services and Shipbreaking business under FalconPoint’s ownership.”
FalconPoint founder and Managing Partner Russ Gehrett adds, “We look forward to supporting Jeremy Kirchin and the talented management team as they work to accelerate growth across both segments.”
The Mill Services business of SMS is a full-service provider of outsourced services to steel mills worldwide, operating in 14 locations in four countries on three continents. The Shipbreaking business of SMS is headquartered in Portage, Indiana, and is a marine vessel recycler and remediation contractor to the United States government with operations in Brownsville, Texas.
SMS also operates metal recycling facilities in East Chicago, Indiana, and Blue Island, Illinois. The Blue Island location hosts a metals shredding plant, according to the 2024 edition of the Recycling Today Auto Shredder List & Map.