McNally Capital, a leader in Direct Family Capital, has made an investment in The Smith & Oby Company. Smith & Oby is a leading Midwest HVAC and plumbing mechanical contractor and services provider serving primarily the health care, education, commercial & industrial, and civic end markets. McNally invested in Smith & Oby out of McNally Capital Fund II, the firm’s committed buyout vehicle.
“We are excited to partner with the Smith & Oby team to help them expand upon the exceptional growth they have already achieved in this industry,” said Ravi P. Shah, Principal at McNally Capital. “Smith & Oby has a highly reputable brand name in the HVAC sector and a proven track record of delivering high-quality mechanical contracting products and services to its customers. We look forward to contributing Direct Family Capital and our firm’s industry expertise to enable their continued growth, diversify revenue streams, and expand into new markets.”
McNally’s investment in Smith & Oby aligns with the firm’s investment thesis focused on facilities management and HVAC. McNally Capital completed this investment in line with its model of partnering with family- and founder-owned businesses.
“It’s not common today to spend your entire career at one company, but we have many such employees, myself included. I believe our deeply tenured team is a testament to the strong foundation we have built and the growth-oriented mindset at Smith & Oby,” says Mike Brandt, President and CEO of Smith & Oby and a 39-year veteran of the company who started as a pipefitter apprentice. "As a 124-year-old privately-owned business, we are excited to have a partner in McNally Capital, who themselves have a 160+ year history as a family business and investment firm and share the same core values and vision as we do.”
MelCap Partners, LLC acted as the sole financial advisor, and Benesch, Friedlander, Coplan & Aronoff LLP acted as legal counsel to Smith & Oby. Ropes & Gray LLP served as legal counsel to McNally Capital.