Alliance Laundry Systems 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.

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.

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.

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.

Alliance Laundry Systems is the leading designer, manufacturer and marketer of commercial laundry equipment used in laundromats, multi-housing laundries and on-premise laundries.

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. 

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.