Air Pros USA: PE-Backed HVAC Giant's $250M Collapse and Six-Way Breakup

When AFH Air Pros, LLC filed for chapter 11 bankruptcy protection in March 2025, it followed six years of expansion from a two-person operation to a multi-state business with over 700 employees and 600 service vehicles across eight states. The Florida-based HVAC, electrical, and plumbing company grew through acquisition-driven expansion backed by private equity capital and entered chapter 11 with more than $250 million in secured debt. The case proceeded as a break-up sale of the company's business units.

The Air Pros bankruptcy represented the first chapter 11 filing for a large-scale, private equity-backed home services platform formed during the post-pandemic consolidation period. HVAC services M&A activity continued, with private equity add-on transactions targeting HVAC providers rising 88% year-over-year through mid-2025. The case resulted in a six-unit break-up sale, and founder Anthony Perera later reacquired the Florida operations where the company began.

Debtor(s)	AFH Air Pros, LLC
D/B/A	Air Pros USA, Air Pros Solutions
Headquarters	Fort Lauderdale, Florida
Industry	HVAC / Electrical / Plumbing Services
Founded	2017
Founder	Anthony Perera
PE Sponsor	Peak Rock Capital (invested September 2021)
Petition Date	March 18, 2025
Court	U.S. Bankruptcy Court, District of Delaware
Case Number	25-10499 (Lead, Jointly Administered)
Employees	700+
Service Vehicles	600+
States of Operation	8 (FL, TX, CO, GA, AL, LA, MS, WA)
Total Secured Debt	Over $250 million
Sale Structure	Six separate asset purchase agreements
DIP Facility	$20 million
Confirmation Date	September 4, 2025

From One Truck to Multi-State Business

Air Pros began in 2017 when Anthony Perera founded the company in Fort Lauderdale with a single truck and two employees. Perera built the operation into a residential HVAC service provider in South Florida. The early years focused on organic growth in the Fort Lauderdale, Hollywood, and Miami metropolitan areas.

The expansion from local contractor to regional operator began in late 2019. That November, Air Pros acquired Blue Star Heating and Air in the Dallas/Fort Worth market, marking the company's first expansion outside Florida and its initial entry into Texas. The company then pursued acquisition-driven expansion over the next two years.

Acquisitions continued in early 2020. In January 2020, Air Pros acquired Bruno Total Home Performance in Fort Myers, adding 55,000 customers to the platform. Bruno represented the third acquisition in 60 days, and acquisitions continued through 2022. The company also acquired Climate Solutions, Co. in 2020, expanding into Colorado, Georgia, and Washington.

The Peak Rock Investment. The acquisition strategy continued in September 2021 when Air Pros received strategic growth financing from an affiliate of Peak Rock Capital LLC. Peak Rock, a middle-market private investment firm, provided capital intended to support additional growth in existing markets and acquisitions in new markets. At the time of the investment, Air Pros had already expanded into metro areas across Florida, Colorado, Georgia, Texas, and Washington.

The Peak Rock investment was followed by larger acquisitions. Less than a week after announcing the financing, Air Pros acquired Hansen Heating and Air, a Mobile, Alabama-based company serving the broader Gulf Coast region since 2006. The Hansen transaction doubled the Air Pros footprint, adding more than 350 vehicles, 500 technicians and staff, and a customer base exceeding 100,000 accounts. | Date | Acquisition | Location | Impact | |------|-------------|----------|--------| | November 2019 | Blue Star Heating and Air | Dallas/Fort Worth, TX | First Texas entry; expansion outside Florida | | January 2020 | Bruno Total Home Performance | Fort Myers, FL | Added 55,000 customers; third acquisition in 60 days | | 2020 | Climate Solutions, Co. | Various | Continued geographic expansion | | September 2021 | Hansen Heating and Air | Mobile, AL / Gulf Coast | Doubled footprint; 350 vehicles, 500+ staff, 100K customers | | 2022 | Dallas Plumbing Company | Dallas, TX | 120-year-old company; expanded plumbing services |

The expansion continued through 2022, with Air Pros strengthening its Texas presence by acquiring Dallas Plumbing Company, a 120-year-old firm with equal HVAC and plumbing operations. Scale at Peak. At its height, Air Pros operated with over 700 employees and 600 service vehicles across eight states: Florida, Texas, Colorado, Georgia, Alabama, Louisiana, Mississippi, and Washington. Some reports indicated the company reached 800+ trucks and more than 1,000 employees at its peak. The company maintained 16 or more service locations across these markets.

Perera won Ernst & Young's Entrepreneur of the Year 2023 Florida Award for taking an HVAC contracting company from a single truck to a multi-location business in just six years. In 2021, he was named to the South Florida Business Journal's 40 Under 40 list.

Leadership Transition. In March 2022, at the height of the acquisition activity, Perera stepped down as CEO. He remained on the company's board, but day-to-day leadership passed to new management. ## Operational Challenges and Leverage

Court filings and management statements acknowledged that the company grew too fast, and reports described operational and integration challenges following the acquisition pace.

Integration Challenges. Following a series of acquisitions over approximately 15 months, Air Pros faced operational and integration challenges. The company maintained local brand identities for acquired businesses rather than consolidating under the Air Pros umbrella, and reports said this created fragmented practices across regional units and inefficiencies that increased costs.

Customer Complaints. Complaints from customers accumulated before the filing, and WESH 2 News investigated the complaints. Customers who had paid thousands of dollars for HVAC systems, service contracts, and maintenance agreements faced uncertainty about whether their contracts would be honored.

Customer complaints described missed or rescheduled appointments, delayed warranty work, and communication problems. For customers who had purchased HVAC equipment with the expectation of ongoing service and support, the reporting described uncertainty about continued service and warranty work. Debt Burden. The acquisition program was financed with leverage. At the time of filing, Air Pros carried total debt exceeding $250 million, with over $250 million in secured obligations alone.

Prior to filing, the company faced defaults on its obligations. Management attempted to sell the enterprise as a whole but those efforts were unsuccessful.

Chapter 11 Proceedings

Air Pros filed for chapter 11 protection on March 18, 2025, in the U.S. Bankruptcy Court for the District of Delaware. The First Day Declaration described a company encompassing AFH Air Pros, LLC and multiple affiliated entities under joint administration in case number 25-10499. At filing, the company pursued a break-up sale strategy rather than attempting to reorganize as a going concern.

Break-Up Sale Strategy. On the petition date, the debtors filed a Sale Motion seeking approval of bidding procedures for the company's assets. An amended sale motion followed three days later. The court entered a Bidding Procedures Order on April 14, 2025, establishing the framework for marketing and selling the business units.

After earlier attempts to sell the enterprise as a whole were unsuccessful, the company pursued a break-up sale. Each regional operation was marketed separately to buyers with specific geographic or operational interests.

Six-Unit Sale Structure. Air Pros entered into six separate asset purchase agreements to sell all of its businesses as going concerns. These sales were conducted under section 363 of the U.S. Bankruptcy Code, and the company said each transaction was structured to maximize value for the specific business unit. Nearly two months after filing, the company designated successful bidders for each of its business units.

DIP Financing. To maintain operations during the sale process, Air Pros secured debtor-in-possession financing totaling $20 million. The court entered an Interim DIP Order on the petition date, followed by a Final DIP Order on April 23, 2025. The DIP facility was structured with $4 million available initially, an additional $6 million upon final court approval, plus roll-up financing of prepetition secured debt. | Event | Docket | Date | |-------|--------|------| | Chapter 11 Petition Filed | — | March 18, 2025 | | Sale Motion Filed | Dkt. 34 | March 18, 2025 | | Amended Sale Motion | Dkt. 55 | March 21, 2025 | | Bidding Procedures Order | Dkt. 193 | April 14, 2025 | | Successful Bidders Designated | — | ~May 2025 |

Founder Reacquisition. In June 2025, founder Anthony Perera reacquired Air Pros USA's legacy Florida operations. Perera had founded Exuma Capital Partners in 2024, and through this vehicle, he successfully bid to reacquire the markets where he had originally built the company. The Florida operations included Fort Myers, Fort Lauderdale, Hollywood, Miami, Boca Raton, Davie, Tampa, Ocala, and Orlando—the markets where Air Pros USA had been founded and grown before the expansion beyond Florida.

Liquidating Plan Confirmation

Following completion of the asset sales, the debtors pursued confirmation of a liquidating plan to distribute the proceeds and wind down the estates. The chapter 11 plan underwent several iterations as the case progressed.

Plan Development. The initial Chapter 11 Plan was filed on May 30, 2025. A Second Amended Plan and Second Amended Disclosure Statement followed on June 24, 2025, incorporating the results of the sale process and refining the treatment of claims. The court entered an interim approval order for the disclosure statement on June 24, 2025, allowing solicitation of votes from creditors.

Confirmation. The court entered findings of fact, conclusions of law, and a Confirmation Order on September 4, 2025, approximately six months after the initial filing. The order approved the second amended disclosure statement and confirmed the Second Amended Chapter 11 Plan of Liquidation. The plan provided for the distribution of sale proceeds and other estate assets to creditors in accordance with the priority scheme of the Bankruptcy Code.

The debtors also obtained authority to reject executory contracts and unexpired leases through a Rejection Procedures Motion filed May 23, 2025, with the Rejection Order entered on August 21, 2025.

Master Equity Lease. The capital structure included a Master Equity Lease Agreement. The debtors filed a Lease Assumption Motion on July 1, 2025 seeking to assume this lease arrangement, which covered equipment used in the company's operations.

Claims Administration

The liquidating plan administrator continued claims administration following confirmation, with multiple objections to filed claims.

Omnibus Claims Objections. The estates filed omnibus claims objections challenging various filed proofs of claim. Orders sustaining these objections reduced the claims pool.

Tax Claims. The estates also addressed tax claims from governmental units. Tarrant County's claim was reclassified on October 30, 2025, and Eagle Mountain-Saginaw Independent School District's claim was reclassified on October 31, 2025. These Texas tax claims reflected the company's operations in the Dallas/Fort Worth metropolitan area.

Vehicle Fleet Financing. Multiple motions for relief from the plan injunction came from vehicle financing parties. The company reported more than 600 service vehicles, financed through various lenders. Ford Motor Credit obtained relief in September 2025, and Valley National Bank followed in December 2025. Numerous other vehicle lenders obtained consent orders addressing their collateral.

Insurance Matters. Continental Casualty Company and National Fire Insurance Company filed a response and reservation of rights in November 2025, indicating insurance coverage disputes or claims handling issues.

Professional Retentions

The debtors and the official committee of unsecured creditors retained bankruptcy professionals for the chapter 11 cases.

Debtors' Professionals. Greenberg Traurig, LLP served as lead bankruptcy counsel for the debtors. Jefferies LLC acted as investment banker for the sale process. Accordion Partners, LLC provided financial advisory services, and Luis Palacios served as chief restructuring officer, providing interim management during the bankruptcy. Kurtzman Carson Consultants, LLC handled claims and noticing administration.

UCC Professionals. The official committee of unsecured creditors was represented by Pachulski Stang Ziehl & Jones LLP as lead counsel, with Smallbridge serving as co-counsel. Province, LLC acted as financial advisor to the committee.

Professional Fee Applications. Final professional fee applications were filed in October 2025, with orders approving the applications entered in November 2025. | Professional | Application | Order | |--------------|-------------|-------| | Greenberg Traurig, LLP | Dkt. 791 (October 24) | Dkt. 847 (November 19) | | Jefferies LLC | Dkt. 795 (October 24) | Dkt. 849 (November 19) | | Accordion Partners, LLC | Dkt. 793 (October 24) | Dkt. 848 (November 19) | | Pachulski Stang (UCC) | Dkt. 761 (October 17) | Dkt. 857 (November 21) | | Smallbridge (UCC) | Dkt. 762 (October 17) | Dkt. 858 (November 21) | | Province, LLC (UCC) | Dkt. 764 (October 18) | Dkt. 859 (November 21) | | Luis Palacios (CRO) | Filed earlier | Dkt. 692 (September 5) |

Industry Context: HVAC Consolidation and Private Equity Roll-Ups

The Air Pros bankruptcy occurred during continued consolidation activity in the HVAC services industry.

Private Equity Activity. Industry reports describe a highly fragmented sector with thousands of small and mid-sized businesses operating in local and regional markets. Transaction multiples for HVAC acquisitions were reported above 10x EBITDA for quality targets.

Air Pros represented one of the largest private equity-backed home services platforms formed during the post-pandemic consolidation period. Peak Rock Capital's 2021 investment provided the capital to accelerate acquisitions.

Continued M&A Activity. Consolidation activity in HVAC services continued. Through mid-2025, global HVAC services M&A volume reached 77 deals year to date. Private equity add-on transactions targeting HVAC service providers rose 88% year-over-year through June 2025. Private equity firms and portfolio platforms combined for 39 of the 77 HVAC M&A deals during this period.

Key Timeline

Frequently Asked Questions

What was Air Pros?

AFH Air Pros, LLC, operating as Air Pros USA and Air Pros Solutions, was a Florida-based residential and commercial HVAC, electrical, and plumbing services company. Founded in 2017 by Anthony Perera with one truck and two employees, the company grew through acquisitions to over 700 employees and 600+ service vehicles across eight states before filing for bankruptcy in March 2025.

Why did Air Pros file for bankruptcy?

The company acknowledged it grew too fast through a series of acquisitions between 2020 and 2022. Maintaining local brand identities for acquired companies created fragmented operations and increased costs. The company also carried over $250 million in secured debt and faced unsuccessful attempts to sell the enterprise as a whole before filing for chapter 11.

What was Peak Rock Capital's involvement?

Peak Rock Capital, a middle-market private investment firm, provided strategic growth financing in September 2021. This capital was intended to support additional acquisitions and market expansion. The Hansen Heating and Air acquisition, announced less than a week after the Peak Rock financing, doubled the company's footprint.

How were the business units sold?

Unlike a single going-concern sale, Air Pros pursued a break-up strategy with six separate asset purchase agreements. Each business unit was marketed and sold individually as a going concern under section 363 of the Bankruptcy Code. Buyers bid on individual units.

Did the founder buy back any operations?

Yes. In June 2025, founder Anthony Perera reacquired Air Pros USA's legacy Florida operations through Exuma Capital Partners, a firm he founded in 2024. The reacquisition returned the original Florida markets—including Fort Lauderdale, Miami, Tampa, and Orlando—to Perera's ownership.

What happened to customer contracts and warranties?

Customers who paid for HVAC systems, service contracts, or maintenance agreements faced uncertainty during the bankruptcy. The claims agent, Kurtzman Carson Consultants, administered the claims process, allowing customers to file claims for any amounts owed. Business units sold as going concerns generally assumed ongoing customer obligations.

Why is this case relevant to the home services industry?

Air Pros represented the first chapter 11 filing for a large-scale, private equity-backed home services platform formed during the recent consolidation period. The case proceeded as a break-up sale following acquisition-driven growth and more than $250 million in secured debt.

When was the liquidating plan confirmed?

The Second Amended Chapter 11 Plan of Liquidation was confirmed on September 4, 2025, approximately six months after the March 2025 filing. The plan provided for distribution of sale proceeds and remaining estate assets to creditors.

Who were the professionals in the case?

Greenberg Traurig, LLP served as debtors' counsel, with Jefferies LLC as investment banker and Accordion Partners, LLC as financial advisor. Luis Palacios served as chief restructuring officer. The official committee of unsecured creditors was represented by Pachulski Stang Ziehl & Jones LLP with Province, LLC as financial advisor.

What is the current state of HVAC industry consolidation?

HVAC M&A activity continued. Private equity add-on transactions targeting HVAC service providers rose 88% year-over-year through mid-2025, with transaction multiples remaining above 10x EBITDA. Industry analysts characterize the residential HVAC services segment as approximately midway through its consolidation cycle.

Read more chapter 11 case research on the ElevenFlo blog.