McNally Capital Introduces Foundral, a New Platform for Union Mechanical Contracting Leaders
Foundral Is a Growing Family of Leading Mechanical Contracting Companies, Including Smith & Oby and DSO
McNally Capital (“McNally”), a private equity firm specializing in aerospace & defense and industrial technology & services investments in the lower middle market, announced today the launch of Foundral, a newly formed and rapidly expanding family of union-backed mechanical contracting companies. Foundral builds on the success and legacy of an existing McNally Capital portfolio company: Smith & Oby. Smith & Oby, and its wholly-owned subsidiary DSO, are two respected names in commercial mechanical contracting. Smith & Oby is a staple of Ohio’s construction industry, with a history that extends back to 1898; based in West Virginia, DSO has completed more than 100 major projects over the past decade.
“We are committed to building a platform that brings together some of the most respected and accomplished mechanical contractors in the country,” said Ravi Shah, Partner at McNally Capital. “Since McNally Capital’s acquisition of Smith & Oby, we have strengthened governance, leadership, and positioning through our proprietary value creation playbook, Atlas. We are excited for continued evolution and scale through Foundral as our platform.”
Foundral was created to be the backbone for exceptional mechanical contractors. It is a new foundation to unite skilled builders rooted in strength, operational precision, and enduring values. To support the growth and operations of Foundral, McNally has appointed Jason Richards as Executive Chairman of the Board and Chief Executive Officer. A mechanical and licensed professional engineer, Richards has successfully led the strategic growth and operational excellence of multiple businesses and has more than 33 years of experience in the infrastructure services sector.
“At Foundral, we believe the best way to create long-term value is by honoring the legacy of great companies while giving their employees the support and resources they need to thrive,” said Richards. “We’re building from a position of strength with Smith & Oby and DSO by buying quality companies, integrating them thoughtfully and providing a solid foundation for sustainable success. That’s how we’re creating value for contractors and their clients, as well as for our investors.”
McNally Capital and Foundral are seeking partnership opportunities with commercial mechanical contractors, targeting companies across traditional Midwestern states and neighboring regions. The platform focuses on organizations with a strong HVAC specialty, union-based labor, strong workforce depth, and annual revenues of at least $25 million. Ideal partners are those serving progressive end markets, such as data centers, hospitals, manufacturing, colleges and universities, and those positioned for the next wave of infrastructure expansion.
As a growing family of leading mechanical contracting companies, Foundral is well-positioned to continue its mission of uniting trusted teams to deliver high-performance solutions for key stakeholders across healthcare, higher education, industrial, government, life sciences, and data center environments.
About McNally Capital
McNally Capital is a private equity firm based in Chicago, Illinois. The firm is currently investing out of its committed buyout fund, McNally Capital Fund III, LP.
The firm seeks thesis-driven buyout investments in the lower middle market across two primary industries: Aerospace & Defense and Industrial Technology & Services. McNally Capital seeks to apply its hands-on experience, institutional capabilities, and proprietary value creation framework to its portfolio companies to benefit management teams in their next phase of growth and build value for McNally Capital’s investors.
Ward McNally, Co-CEO & Managing Partner, founded the firm in 2008. He is a sixth-generation member of the McNally family, which proudly owned and operated Rand McNally & Company for nearly 150 years until its sale in 1997. We believe these roots provide a deep appreciation of building and scaling companies that shape industries and endure for generations.
About Foundral
Foundral is a growing family of leading mechanical contracting companies, uniting trusted teams across HVAC, plumbing, and fire protection to build the essential infrastructure of tomorrow. Born from the workers and entrepreneurs who built the Midwest, Foundral honors a rich history of craftsmanship, integrity, and grit while delivering modern, high-performance solutions for healthcare, higher education, industrial, government, life sciences, and data center environments. For more information, visit www.foundral.com.
