U.S. private equity firm BDT Capital Partners has agreed to acquire a majority stake in Alliance Laundry Systems LLC from the Ontario Teachers’ Pension Plan. No financial terms were disclosed. After the deal closes later this year, Ontario Teachers will retain a minority stake in the company. Morgan Stanley & Co LLC, BMO Capital Markets Corp and Bank of America NA provided financial advice to Alliance Laundry on the transaction. Based in Ripon, Wisconsin, Alliance Laundry is a maker of commercial laundry equipment. Teachers’ Private Capital, the private investment arm of Ontario Teachers, bought it for US$450 million in January 2005.
BDT Capital Partners, LLC Agrees to Acquire a Majority Stake in Alliance Laundry Systems from Ontario Teachers’
RIPON, Wis., Aug. 6, 2015 /PRNewswire/ — Alliance Laundry Systems (“the Company” or “Alliance”), the leading, global designer and manufacturer of commercial laundry equipment, announced today that BDT Capital Partners, LLC, (“BDT”) through its investment funds, has agreed to acquire a majority interest in the Company from Ontario Teachers’ Pension Plan (“Teachers'”). Teachers’ is expected to retain a minority interest in the Company following the completion of the transaction.
Mike Schoeb, Alliance’s President and Chief Executive Officer, commented, “Our management team will hold a significant ownership stake following the transaction and is excited by the new partnership with BDT. This partnership will allow us to accelerate the execution of our proven growth strategy, continue to invest in new and innovative products of exceptional quality and strengthen the value we bring to our premier 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.”
Teachers’ Private Capital (“TPC”), the private equity group of Teachers’, acquired Alliance in January 2005. During their ownership, Alliance expanded operations outside North America, to Europe, the Middle East, Africa and Latin America and successfully entered new segments and served new end markets.
“The Company has delivered exceptionally strong revenue and earnings growth since TPC acquired the Company and has been a terrific investment for more than 10 years,” said Jane Rowe, Senior Vice-President of TPC.
Morgan Stanley & Co. LLC, BMO Capital Markets Corp., and Bank of America, N.A. acted as financial advisors to Alliance. Bank of America, N.A. and BMO Capital Markets Corp. acted as joint lead arrangers for a senior secured credit facility. Debevoise & Plimpton LLP acted as legal advisor to Alliance and Cravath, Swaine & Moore LLP acted as legal advisor to BDT. Completion of the transaction is expected in the third quarter of 2015. Additional terms of the deal were not disclosed.
About Alliance Laundry Systems
Alliance Laundry Systems is the leading designer, manufacturer and marketer of commercial laundry equipment used in laundromats, multi-housing laundries and on-premise laundries. Under the well-known brand names of Speed Queen®, UniMac®, Huebsch®, IPSO®, Primus® and Deli®, Alliance produces a full line of commercial washing machines, dryers and ironers with load capacities ranging from 12 to 400 pounds. Certain brands of its commercial products are also sold in the consumer laundry marketplace. Alliance Laundry’s worldwide employment was 2,730 at the end of December 2014. Alliance Laundry is the world’s leading manufacturer of commercial laundry equipment.
About BDT Capital Partners, LLC
BDT Capital Partners provides family-owned and entrepreneurially led companies with long-term, differentiated capital. Based in Chicago, the firm manages investment funds of more than $8 billion, with an investor base that has the ability to invest significant additional capital. Its affiliate, BDT & Company, is a merchant bank that works with family and founder-led businesses to pursue their strategic and financial objectives. BDT & Company provides solution-based advice and access to an extensive network of world-class closely held businesses.
The Ontario Teachers’ Pension Plan (Teachers’) is Canada’s largest single-profession pension plan, with $154.5 billion in net assets as of December 31, 2014. It holds a diverse global portfolio of assets, 80% of which is managed in-house, and has earned an annualized rate of return of 10.2% since the plan’s founding in 1990. Teachers’ is an independent organization headquartered in Toronto. Its Asia-Pacific region office is located in Hong Kong and its European, Middle East and African region office is in London. The plan, which is fully funded, invests and administers the pensions of 311,000 active and retired teachers in Ontario. For more information, visit www.otpp.com and follow us on Twitter @OtppInfo.
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