HKW cashes out of SDI with Morgan Stanley investment

U.S. private equity firm Hammond, Kennedy, Whitney & Co (HKW) has exited Specialized Desanders Inc (SDI), a Calgary-based oilfield equipment company specializing in sand management solutions. The exit resulted from the previously announced investment in SDI by Morgan Stanley Energy Partners. No financial terms were released. HKW, which first invested in SDI in 2013, supported the company in “numerous initiatives,” CEO Chris Hemstock said, including expanding it internationally.

PRESS RELEASE

Hammond, Kennedy, Whitney & Company, Inc. Announces Sale of Specialized Desanders, Inc. to Morgan Stanley Energy Partners

Indianapolis, IN – Hammond, Kennedy, Whitney & Company, Inc. (“HKW”) is pleased to announce that on March 20, 2018 it closed on the sale of Specialized Desanders, Inc. (“SDI” or “Company”). SDI, headquartered in Calgary, Alberta, Canada is a leading provider of engineered de-sanding solutions to high pressure oil and gas wells. For additional information on the Company, please visit www.desanders.com.

The buyer is Morgan Stanley Energy Partners (“MSEP”), the energy-focused private equity business of Morgan Stanley Investment Management.

“HKW has been a valued partner over their years of investment,” said Chris Hemstock, SDI CEO. “Their team assisted us in numerous initiatives, including expanding the business internationally. We look forward to continuing to grow our business with MSEP in the coming years.”

“SDI’s management team has been a pleasure to work with since 2013,” added Jeff Wood, HKW Senior Partner and former Chairman of the SDI Board. “The company was able to successfully navigate significant headwinds in the energy industry during the last few years. Credit is due to Chris and his team for their ability to continually innovate and maintain a leading position in the desanding market.”

About HKW – HKW is a private equity firm founded in 1903 with offices in Indianapolis and New York. Since 1982, HKW has sponsored 56 platform transactions of lower middle-market companies throughout North America, as well as 61 add-on acquisitions. For further information on HKW, please visit www.hkwinc.com.

About MSEP – 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. For further information about Morgan Stanley Energy Partners, please visit https://www.morganstanley.com/im/en-us/capital-seeker/teams/private-equity/energy-partners-team.html..

SDI’s financial advisor was KeyBanc Capital Markets, an investment bank headquartered in New York City, New York. Further information about KeyBanc is available at www.key.com/corporate/capital-markets/mergers-acquisitions.jsp.

Contact: James C. Snyder
jcs@hkwinc.com
March 20, 2018

Photo courtesy of Specialized Desanders Inc