Morgan Stanley Energy Partners (MSEP) has made an undisclosed investment in Specialized Desanders Inc (SDI), a Calgary-based oilfield equipment company which serves customers in the North American and global energy industry. The deal will see MSEP partner with CEO Chris Hemstock and SDI’s management team. Founded in 2001, SDI specializes in oilfield equipment that removes sand and other solids during the well flowback and production process. MSEP, the energy private equity affiliate of U.S. financial services firm Morgan Stanley, said the investment will support the company’s growth and expand its suite of sand management solutions.
Morgan Stanley Energy Partners Completes Investment in Specialized Desanders, Inc.™
March 21, 2018
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.
Lauren Belmare, 212-761-5303
Photo courtesy of Specialized Desanders Inc