Alliance Laundry Systems made a strong debut on the New York Stock Exchange on Thursday, closing its first day of trading up 11.4% giving the company a market valuation of roughly $4.8bn and marking a successful partial exit for PE firm BDT Capital Partners, according to a report by Reuters.
BDT has owned a majority stake in the Wisconsin-based commercial laundry equipment manufacturer since acquiring it from the Ontario Teachers’ Pension Plan in 2015.
Shares opened at $24.50, above the IPO price of $22, after Alliance and its existing shareholders sold 34.1 million shares at the top of the marketed range of $19–$22.
Market observers say the strong debut reflects improving investor sentiment toward private equity-backed industrial businesses, which had lagged behind more growth-oriented offerings in recent years.
Alliance’s listing follows the recent New York flotation of Legence (LGN.O), the Blackstone-backed engineering services group, suggesting that sponsor exits are once again gaining traction amid easing macroeconomic uncertainty.
Founded over 117 years ago, Alliance manufactures commercial washing machines, dryers, and ironers, serving the hospitality, healthcare, and multi-housing sectors globally.
