Commercial laundry equipment maker Alliance Laundry Systems announced that a portion of the company will be sold to the private equity arm of a Canadian teachers' pension plan, under a U.S. $450 million deal. The sale ended the company's plans to go public, announced earlier this year.
Alliance Laundry Systems said a majority stake in Alliance will be sold by the private equity firm Bain Capital and minority shareholders in the company. Company management will continue to hold a significant investment in Alliance, the company said.
The transaction is expected to be completed by February 2005, once financing is finalized. The announcement comes as the manufacturer undertakes an expansion effort tied to its new initiative selling Speed Queen washing machines and dryers to consumers.
The company said it expects to create 400 manufacturing jobs in the coming years to support its growth. Alliance received $1.25 million in state assistance for its expansion plan.
Through the first 9 months of 2004, Alliance reported sales of $204.8 million, up 3.1 percent from the same period in 2003. Net income rose $3.8 million to $13.5 million. (Milwaukee Journal Sentinel)
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