SC&H Capital announced that its client, Quality Heating & Air Conditioning Company, has been acquired by Kelso Industries.   
   
QHA is a manufacturer and installer of commercial sheet metal ductwork for construction and commercial customers across the Mid-Atlantic. Located in Wilmington, Delaware and founded in 1966, QHA employs around 160 highly trained individuals and has worked on an extensive variety of projects over the past five decades.
 
QHA had enjoyed steady revenue and profitability for many years leading up to a downturn in the market, compounded by higher labor and material costs. Ownership was forced to seek bankruptcy protection and SC&H Capital was retained to quickly facilitate a sale of QHA.
 
Saddled with many unprofitable legacy contracts that were negatively impacting cash flow, SC&H Capital worked with QHA to identify which contracts made sense to shed and those that had value to a buyer. SC&H Capital conducted a thorough and timely marketing process which culminated with a two-day auction and negotiation to sell to Kelso. The go-forward company will continue to operate out of the same Wilmington facilities and maintain employment for the staff.  
 
“The sale to Kelso checked a lot of boxes for QHA: continued operations and employment, and the wherewithal to finish existing jobs to ensure customer satisfaction, plus maximum recovery for the estate. Kelso continues to build a full suite of mechanical service companies across the U.S. and QHA will be a nice addition for them,” said Matt LoCascio, Principal at SC&H Capital.  
 
The transaction was signed in May 2023 and closed in June 2023.