BDT & MSD's Alliance Laundry targets $4.3 billion valuation in US IPO

By Arasu Kannagi Basil

(Reuters) -Alliance Laundry is targeting a valuation of up to $4.34 billion in its U.S. initial public offering, the commercial laundry equipment maker said on Monday, as the frenzy around first-time share sales rages on.

The Ripon, Wisconsin-based company and its backer, BDT Capital Partners, are aiming to raise up to $751.2 million by offering 34.1 million shares priced between $19 and $22 apiece.

Private equity-backed IPOs have also picked up pace in recent months as sponsors look to seize on a window of opportunity to take their portfolio companies public.

Blackstone-backed engineering and maintenance services provider Legence went public in New York earlier this month.

"The recent broadening out of the profile of U.S. IPO deal flow to include PE-backed firms should help to steer investors towards the deal," IPOX CEO Josef Schuster told Reuters.

Founded in 1908, Alliance Laundry manufactures commercial washing machines, dryers and ironers with load capacities of up to 400 pounds under five brands - Speed Queen, UniMac, Huebsch, Primus and IPSO.

The stock market flotation comes after the company's owner, BDT & MSD Partners, previously explored a sale of the business that could have valued it at nearly $5 billion, including debt, Reuters had reported.

In 2015, Ontario Teachers' Pension Plan sold its majority stake in Alliance Laundry to BDT Capital Partners.

Cornerstone investors Capital International and Kayne Anderson Rudnick have indicated interest in buying up to $100 million of Alliance Laundry's shares.

"The interest from cornerstone investors to take up a significant portion of the deal underlines the attractiveness of the IPO for medium- to long-run focused investors," Schuster said.

BofA Securities and J.P. Morgan are the lead underwriters for the offering. Alliance Laundry will list on the New York Stock Exchange under the symbol "ALH."

BDT Capital Partners, an affiliate of merchant bank BDT & MSD Partners, will own 76% of Alliance Laundry's shares following the offering.

(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Shreya Biswas)

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