Morgan Stanley Energy Partners acquires Specialized Desanders from HKW

Morgan Stanley Energy Partners (MSEP) has acquired Specialized Desanders Inc. (SDI), partnering with CEO Chris Hemstock and the current SDI management team. Financial terms were not disclosed.

Co-founded by Chris Hemstock in 2001, Specialized Desanders, formerly Specialized Tech Inc, is a leading oilfield equipment company that specializes in engineering, assembling, distributing, and servicing patented, high-pressure equipment that efficiently removes sand and other solids during the well flowback and production process.

Hammond, Kennedy, Whitney & Company, Inc. (HKW) closed recapitalization of Specialized Tech Inc. in September 2013.

Morgan Stanley Energy Partners, the energy-focused private equity business of Morgan Stanley Investment Management, is a leading energy private equity platform that makes privately negotiated equity and equity-related investments in energy companies located primarily in North America. Morgan Stanley Energy Partners pursues a differentiated investment strategy, focused on the buyout and build-up of strategically attractive, established energy businesses across the energy value chain.

photo credit: Specialized Desanders Inc.

News Release

Morgan Stanley Energy Partners Completes Investment in Specialized Desanders, Inc.™

March 21, 2018 08:30 AM Eastern Daylight Time

NEW YORK–(BUSINESS WIRE)–Investment funds managed by Morgan Stanley Energy Partners (collectively, “MSEP”) announced today that they have completed an investment in Specialized Desanders, Inc. (“SDI” or the “Company”). MSEP is partnering with CEO Chris Hemstock and the current SDI management team to support the growth of the Company’s innovative oilfield equipment and services business across North America and internationally. Terms of the transaction were not disclosed.

SDI, headquartered in Calgary, Alberta, is a leading oilfield equipment company that specializes in engineering, assembling, distributing, and servicing patented, high-pressure equipment that efficiently removes sand and other solids during the well flowback and production process. The Company has longstanding relationships with top Canadian E&P firms and has been growing rapidly in the U.S. market. The Company was co-founded by Chris Hemstock in 2001 and has built a world-class reputation for technical innovation, reliability, and service.

John Moon, Managing Director and Head of Morgan Stanley Energy Partners, said “The North American energy industry continues to increase productivity, and innovative companies like SDI have proven critical in supporting this success. SDI will continue to play an important and growing role in enabling the next generation of completion techniques. We are delighted to partner with an innovative company that is uniquely well suited to the changing industry.”

“We are excited to be working with Chris and the SDI team to accelerate the Company’s growth and expand their suite of novel sand management solutions,” added Mark Bye, Managing Director of Morgan Stanley Energy Partners. “SDI’s management has a passion and proven track record of leveraging technical solutions to create value for their customers, and we are pleased to be joining with them to further build this capability.”

Chris Hemstock, CEO and co-founder of SDI said “MSEP has decades of experience in the oil and gas industry and a vast network in the USA, Canada, and internationally that can help us grow. We have many exciting opportunities in front of us and truly believe that MSEP brings the expertise, networks, and resources that we need in a partner.”

About Specialized Desanders, Inc.

Headquartered in Calgary, Alberta, Specialty Desanders, Inc. is a leading provider of proprietary desanding equipment and services serving oil and gas customers in Canada, USA and internationally. For further information about Specialty Desanders, Inc., please visit www.desanders.com.

About Morgan Stanley Energy Partners

Morgan Stanley Energy Partners, the energy-focused private equity business of Morgan Stanley Investment Management, is a leading energy private equity platform that makes privately negotiated equity and equity-related investments in energy companies located primarily in North America. Morgan Stanley Energy Partners pursues a differentiated investment strategy, focused on the buyout and build-up of strategically attractive, established energy businesses across the energy value chain in partnership with world-class management teams. For further information about Morgan Stanley Energy Partners, please visit www.morganstanley.com/im/en-us/capital-seeker/teams/private-equity/energy-partners-team.html .

About Morgan Stanley Investment Management

Morgan Stanley Investment Management, together with its investment advisory affiliates, has more than 608 investment professionals around the world and $482 billion in assets under management or supervision as of December 31, 2017. Morgan Stanley Investment Management strives to provide outstanding long-term investment performance, service and a comprehensive suite of investment management solutions to a diverse client base, which includes governments, institutions, corporations and individuals worldwide. For further information about Morgan Stanley Investment Management, please visit www.morganstanley.com/im

About Morgan Stanley

Morgan Stanley (NYSE: MS) is a leading global financial services firm providing investment banking, securities, wealth management and investment management services. With offices in more than 42 countries, the Firm’s employees serve clients worldwide including corporations, governments, institutions and individuals. For more information about Morgan Stanley, please visit www.morganstanley.com.

Contacts

Morgan Stanley
Media Relations:
Lauren Belmare, 212-761-5303


Ted Liu
Ted Liu, M.Sc. (Mining), MBA (Finance), is the Editor of Private Capital Journal, TechnologyMetals.ca, GoldSilverMetals.ca, and former Editor of Canadian Private Equity. Ted has been passionately tracking Canadian private capital industry since 1992, most recently served as Research Director for The Canadian Venture Capital and Private Equity Association (CVCA). Ted was the architect of CVCA infobase, and is the architect of sophisticated and advanced CPE Media Private Capital Dealbase. Ted is President of CPE Media Inc., Canada's independent, trusted and unbiased data provider tracking Canadian VC/PE, private capital industry and public market.
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