FalconPoint Capital Acquires Steel Mill Services and Shipbreaking Divisions of SMS

Strategic Divestment Sharpens SMS Focus on Scrap Metal Operations

FalconPoint Capital Partners, a private equity firm in New York, has acquired key divisions of (SMS). The deal includes the Steel Mill Services and Shipbreaking units of SMS, based in Burnham, Illinois. This marks a major shift as SMS narrows its focus on ferrous and nonferrous scrap processing.

Jeff Gertler, SMS board chair and co-founder, highlighted the mutual benefits. “These businesses will grow under FalconPoint’s strategy,” he noted. Meanwhile, SMS keeps its core operations, including sites in East Chicago and Blue Island, Illinois. As a result, the company gains financial flexibility to grow its core recycling business.

FalconPoint now owns a global mill services provider with 14 locations in four countries. The Shipbreaking division, located in Portage, Indiana, specializes in marine recycling. Notably, it also operates in Brownsville, Texas, as a U.S. government contractor. This acquisition supports FalconPoint’s global growth ambitions.

FalconPoint Capital Expands Global Reach with Steel Mill Services

Through this acquisition, FalconPoint gains immediate access to operations in North America, Europe, and Asia. Russ Gehrett, the firm’s founder, expressed strong support for the SMS leadership team. “We’re excited to help them grow both segments,” he said.

Headwall Partners, a Florida-based investment bank, advised SMS throughout the deal. Headwall specializes in metals and mining transactions and played a key role in closing the sale. CEO Jeremy Kirchin praised Headwall’s deep sector knowledge and execution skills.

Meanwhile, the metals recycling industry faces rising consolidation and transformation. This deal helps FalconPoint enter the mill services and shipbreaking space more deeply. At the same time, SMS strengthens its footprint in Midwest scrap processing and recycling.

SuperMetalPrice Commentary:

This deal signals a clear market shift toward specialization over integration. FalconPoint enters the steel services and shipbreaking sectors at a strategic time. Global mills now demand reliable, cost-effective outsourcing partners. On the other hand, SMS can now double down on core scrap processing. The move aligns well with circular economy goals and green steel demand. Looking ahead to 2026, we expect rising competition, more innovation, and renewed M&A activity in both segments.