Old-fashioned commercial washing machine manufacturer Alliance Laundry (ALH.US) set its IPO price at $19-22 per share, raising $750 million.

Self-service laundry business commercial washing machine and dryer manufacturer Alliance Laundry Holdings (ALH.US) and its private equity backers BDT & MSD Partners plan to raise up to $751.2 million through an initial public offering, higher than the previous $500 million plan. According to documents filed on Monday with the U.S. Securities and Exchange Commission, the company and BDT & MSD intend to sell a total of 34.1 million shares at a price of $19 to $22 per share. The company plans to sell 24.4 million shares, while BDT & MSD plans to sell 9.76 million shares. At the highest estimated valuation level for the company, based on the issued shares listed in the documents, its market capitalization is approximately $4.3 billion. The IPO is expected to be priced on October 8th according to the terms of the deal. Funds or accounts managed by Capital International Investors and Kayne Anderson Rudnick Investment Management LLC have expressed interest in buying up to $100 million in shares. The U.S. IPO market has begun to recover after spring volatility, and this recovery trend is starting to spread to the industrial sector. Earlier this month, Alliance Laundry had originally planned an IPO financing of around $500 million. According to previous documents, Alliance Laundry reported a net profit of $48.3 million and revenue of $836.8 million in the six months ending June 30th. In the same period last year, net profit was $67.6 million and revenue was $729 million. The funds raised from this IPO are intended to repay a portion of the $2.1 billion long-term loan agreement. In August 2024, the company paid $841.7 million in dividends to BDT & MSD and its co-investors, as well as $58.3 million in dividends to management shareholders. In 2015, funds associated with BDT & MSD acquired a majority stake in Alliance Laundry from the Ontario Teachers' Retirement Plan, which had acquired the company in 2004 for $450 million. Based in Ripon, Wisconsin, the company was founded in 1908 and operates six factories globally, with three in its home state and the others in the Czech Republic, Thailand, and China. The company sells its products globally through approximately 600 independent distributors. The company designs and manufactures commercial laundry systems for medical facilities, hotels, self-service laundromats, fire stations, and other public places. Alliance Laundry claims to have a 40% share of the commercial laundry market in North America and a significant presence in other international markets. Since 2010, Alliance Laundry's revenue has grown at a compound annual growth rate of 9.5%, and its adjusted EBITDA profit margin is approximately 25%. The issuance is being led by Bank of America Corp, JPMorgan Chase & Co, and Morgan Stanley. The company plans for its shares to be listed on the New York Stock Exchange under the ticker symbol ALH.