Kian Capital-backed SPATCO Energy Solutions Continues Platform Expansion with Acquisition of MSCS

Kian Capital-backed SPATCO Energy Solutions (“SPATCO”), a forward-thinking infrastructure services provider of innovative turnkey solutions for petroleum, environmental and EV market segments, completed the acquisition of MSCS Ltd., a Dallas-based petroleum services company providing construction, installation and maintenance services. The acquisition expands the company’s geographic footprint into Texas after its January 2023 acquisitions of McKinney Petroleum Equipment and Petro Supply.

For the past 26 years, MSCS has provided petroleum service customers with high-quality repair and construction services throughout Texas, supported by a team of highly skilled, factory-trained technicians. MSCS’ services include repair and maintenance on the preeminent brands of equipment used today, as well as general contracting with extensive experience in field service station construction, fuel system installation, tank removal and tank testing. MSCS is well entrenched in the high-growth market of Texas — with operations in Dallas, Fort Worth, San Antonio and Houston — providing the ideal launchpad for SPATCO’s expansion into the state.

MSCS CEO Mark Spenrath commented, “Joining ranks with SPATCO will be advantageous for both the MSCS team and our customers, as the partnership will enable us to expand our service offerings and accelerate our growth with the support of the combined organization. We are thankful to find a partner that shares our cultural values and commitment to customer service excellence. It is clear that Kian’s role in support of SPATCO’s growth and evolution has been a key element of the company’s success, and we are excited to partner with the entire team.”

“As SPATCO continues its expansion, we are excited to welcome Scott Wattenberg to the leadership team as Chief Financial Officer,” said Kian Co-Founder and Partner Kevin McCarthy. “Scott is an instrumental addition as SPATCO’s momentum continues, expanding service capabilities and remaining on the forefront of the changes that are on the horizon for the industry with the rapid technological advancements in the energy infrastructure and equipment services sector,” continued Kian Principal Jordan Lee.

Wattenberg brings 30 years of financial leadership experience to the SPATCO team. For the last nine years, he served as Chief Financial Officer at BestCo, where he led the company’s 2018 exit to RoundTable Healthcare Partners. Before BestCo, he was Chief Financial Officer at Prym, Inc, leading all finance, operations, accounting, IT and legal functions. He has also served in senior leadership positions at Genesis Today, Microstaq, Walmart and Phillips Electronics. Wattenberg’s vast experience will position SPATCO to expand its capacity, deliver on growth plans and help integrate its strategic acquisitions.

“The team at SPATCO is excited to welcome Scott and the entire MSCS team as we begin the next chapter of the platform’s story,” said SPATCO CEO John Force. “With this partnership comes the opportunity for entry into the highly active Texas market, as well as potential for future EV innovation as the state continues to invest significantly in its infrastructure. Additionally, as we’ve grown, our customer base has continued to evolve with blue-chip national and super-regional chains — the very same set of customers with which MCSC is proud to do business. These tenets make for what I am confident will be a successful partnership for all involved — especially our customers and key vendor partners.”

In Texas and throughout the nation, the energy infrastructure and services market is highly fragmented and ripe for consolidation. As the industry looks towards a future of EV and as C-store chains, grocery stores and retailers plan their investments in EV infrastructure, SPATCO remains on the pulse of the trend and active in the sector. The fifth strategic acquisition of MSCS will lead to SPATCO quadrupling EBITDA since Kian’s initial 2020 investment. The combined entity now has over 810 employees across 30 branches in 14 states.

SPATCO is actively seeking partnerships with founders in the energy infrastructure and services space. Business owners interested in learning more should contact David Duke, Partner, Business Development at Kian, at dduke@kiancapital.com.

Kian is SPATCO’s lead investor along with co-investors RF Investment Partners and Apogem Capital. Robinson, Bradshaw & Hinson, P.A. acted as Kian’s legal advisor, and financing for the transaction was provided by Byline Bank.