Smith & Oby: Seeking Strategic HVAC Add-Ons

Deal News | Jun 04, 2025 | McNally Capital LLC

McNally Capital LLC, in collaboration with Smith & Oby, a longstanding mechanical contractor, are actively pursuing partnership opportunities with commercial HVAC mechanical contractors. Their strategy involves targeting companies with specific revenue thresholds in different regions. For tuck-ins around Cleveland, OH or Charleston, WV, they are seeking contractors with over $10 million in revenue. For new market entry, they are eyeing businesses generating over $25 million in revenue. The focus is on U.S.-based companies in the Upper & South Central Midwest that provide comprehensive HVAC services and have a field workforce operating under a self-performing union labor model. Additionally, they prefer contractors whose founder or management intends to remain involved post-acquisition. Smith & Oby, founded in 1898, is notable for its extensive HVAC, plumbing, and various other technical services, and is looking to expand through strategic partnerships.

Sectors

Commercial HVAC
Private Equity

Geography

United States – The article mentions U.S.-based commercial HVAC contractors, with a focus on areas such as Cleveland, OH, and Charleston, WV, indicating a regional emphasis within the U.S.
Upper & South Central Midwest – The targeted geographic expansion focuses on the Upper & South Central Midwest regions in the U.S., where the potential partners are sought.

Industry

Commercial HVAC – The article focuses on the commercial HVAC sector, particularly targeting mechanical contractors that provide end-to-end HVAC solutions, highlighting the importance of complex installations and maintenance services.
Private Equity – McNally Capital, a private equity firm, is involved in identifying strategic acquisitions and partnerships for expansion, a typical activity within the PE industry.

Financials

$10M – Revenue requirement for tuck-ins in or near Cleveland, OH or Charleston, WV.
$25M – Revenue requirement for new market entry.

Participants

Name	Role	Type	Description
McNally Capital LLC	Bidding Company	Company	A private equity firm seeking to expand its portfolio by acquiring and partnering with commercial HVAC mechanical contractors.
Smith & Oby	Other Company	Company	A leading Midwest mechanical contractor since 1898, providing comprehensive services including HVAC, plumbing, and more.