Exclusive-BDT & MSD Partners explores $5 billion sale of Alliance Laundry-sources


By Anirban Sen

(Reuters) – Merchant bank BDT & MSD Partners, the owner of Alliance Laundry Systems, is exploring a sale of the U.S. laundry equipment manufacturer that could value it at nearly $5 billion, including debt, according to people familiar with the matter.

The 116-year-old commercial laundry provider is working with investment bank Morgan Stanley to prepare for a sale process that will launch in the coming weeks, the sources said, requesting anonymity as the discussions are confidential.

BDT & MSD Partners, which was created last year through the merger of computer maker Michael Dell’s investment firm with investment banker Byron Trott’s merchant bank, is seeking a valuation for Alliance Laundry equivalent to more than 13 times the company’s 12-month earnings before interest, taxes, depreciation and amortization (EBITDA) of nearly $350 million, two of the sources said.

BDT & MSD Partners, Alliance Laundry, and Morgan Stanley declined to comment.

Founded in 1908, Alliance Laundry manufactures large-capacity washers and dryers under five premium brands – Speed Queen, UniMac, Huebsch, Primus, and IPSO – and currently serves about 170 countries with more than 4,000 employees, according to its website. The company has grown its business through several tuck-in acquisitions over the years.

It supplies laundry systems to U.S. military facilities, laundromat chains, hotels, long-term healthcare facilities and clinics, restaurants, fire stations, residential apartments, and other businesses across sectors.

In 2015, Ontario Teachers’ Pension Plan sold its majority stake in Ripon, Wisconsin-based Alliance Laundry to BDT Capital Partners, prior to its merger with MSD Partners.

BDT & MSD Partners is run by former Goldman Sachs alumni Trott and Gregg Lemkau. Over the past year, it has participated in several big deals, including buyout firm Silver Lake’s $12.5 billion buyout of software maker Qualtrics, and investments in athletic apparel maker Under Armour and National Amusements, the family holding company of Shari Redstone.

(Reporting by Anirban Sen in New York; Editing by Chizu Nomiyama)

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