Huntsman Gay Capital has acquired Louisiana offshore oilfield services company Grand Isle Shipyard Inc.

Terms of the deal were not disclosed; members of the Pregeant family, who previously owned Grand Isle, will continue to manage its operations and will continue to retain an interest in the company. The Salt Lake City-based private equity firm will acquire the Galliano, Louisiana-based company that has established 12 locations across the Gulf Coast and in Texas.

Allegiance Capital Corp., a middle-market investment bank, served as adviser to Grand Isle on the sale.

Eric Brundage, a senior vice president with Allegiance, noted that despite a slump in valuations for oilfield services companies experienced late last year and in early 2009, the sector beginning to rebound. He notes that valuations in the space have  “held up better than most businesses.”

Huntsman Gay’s debut fund closed in July, locking down more than $1 billion. The firm successfully executed fundraising during a particularly difficult time in the private equity asset class, and did so on the reputations of a number of middle market professionals who banded together to launch the fund.

Rhett Neuenschwander, managing director at Huntsman Gay, said Grand Isle remains poised to develop on its existing presence serving exploration and production services my major oil producers.

The energy space, included in that has appeared increasingly attractive as of late. Lime Rock Partners recently backstopped Allis-Chalmers Energy Inc.’s sale of more than 35 million shares of common stock as the oilfield services worked to pay down its credit facility and senior debt. The PE firm will buy up all of the shares from the sale that do not find a bidder.

Banks, too, have taken notice of opportunities in energy M&A; Stephens Inc., a Little Rock, Arkansas-based bank, hired three professionals to focus on investment banking in the exploration and production space, as well.

Energy industry Industrials