Ontario Teachers’ Pension Plan (Teachers) has agreed to sell a majority interest in Alliance Laundry Systems to BDT Capital Partners. Teachers will retain a minority interest in the company following the closing of the transaction which is expected in the third quarter.
Alliance Laundry Systems is a designer, manufacturer and marketer of commercial laundry equipment used in laundromats, multi-housing laundries and on-premise laundries. Alliance produces a full line of commercial washing machines, dryers and ironers with load capacities ranging from 12 to 400 pounds. Brand names include Speed Queen, UniMac, Huebsch, IPSO, Primus and Deli. Certain brands of its commercial products are also sold in the consumer laundry marketplace. Alliance has revenues of approximately $725 million and has 2,700 employees. The company is headquartered northwest of Milwaukee in Ripon, WI (www.alliancelaundry.com).
Alliance was founded in 1908 and operated as an independent company until 1979 when it was acquired by Raytheon. In February 1998, Raytheon sold the company to Bain Capital for $358 million. Teachers acquired the company from Bain in January 2005 for $450 million.
During Teachers’ term of ownership, Alliance expanded operations outside North America, to Europe, the Middle East, Africa and Latin America and entered new product segments and new end markets. “Alliance has delivered exceptionally strong revenue and earnings growth since we acquired the company and has been a terrific investment for more than 10 years,” said Jane Rowe, Senior Vice-President of Teachers.
“Our management team will hold a significant ownership stake following the transaction and is excited by the new partnership with BDT,” said Mike Schoeb, Alliance’s President and Chief Executive Officer. “This partnership will allow us to accelerate the execution of our growth strategy, continue to invest in new products, and strengthen the value we bring to our distribution partners. BDT’s long investment horizon and their strategic approach to partnering positions Alliance well for the future.”
“We are thrilled to partner alongside the entire Alliance team,” said Chip Dunn, Managing Director at BDT. “Alliance has built its industry-leading position by investing in its people, innovating across its product portfolio and delivering unmatched customer service. Our long-term capital will provide a solid foundation and long runway to continue to pursue exciting growth opportunities around the world.”
Bank of America and BMO Capital Markets are joint lead arrangers for a senior secured credit facility to back the acquisition. Morgan Stanley & Co., BMO Capital Markets, and Bank of America acted as financial advisors to Alliance.
BDT Capital Partners was founded in 2009 by former Goldman Sachs Vice Chairman Byron Trott. The firm has $8 billion of capital under management and is headquartered in Chicago (no website found).
© 2015 PEPD • Private Equity’s Leading News Magazine • 8-7-15