Inside The Deal: Alliance Laundry Holdings

Baird recently served as a bookrunner on a $950 million initial public offering (“IPO”) for Alliance Laundry Holdings Inc. (“Alliance”), the world’s largest maker of commercial laundry equipment. Alliance is distinguished by its differentiated, commercial-focused strategy.

Following the IPO, Baird’s Equity Capital Markets and Global Industrial teams highlight how our long-term partnership approach and deep industry expertise helped guide Alliance through this landmark transaction.

Baird’s 10+ Year History with Alliance

• Baird’s relationship with Alliance began in 2013 during its ownership by Ontario Teachers’ Pension Plan (“OTPP”).
• Subsequently, Baird hosted Alliance at our Global Industrial Conference in 2014. This initial engagement led to Baird earning a bookrunner role on Alliance’s planned 2015 IPO, a process ultimately preempted by the sale of Alliance to BDT Capital Partners (“BDT & MSD”).
• Baird’s Global Industrial Team leveraged its deep sector knowledge to develop a strong relationship with BDT & MSD over the years, supported by a history of successful transactions.
• Alliance once again participated in Baird’s Global Industrial Conference in 2022, meeting with nearly a dozen public institutional investors.
• Baird’s client-first, long-term partnership approach solidified our role as a trusted advisor to both Alliance and its sponsor, BDT & MSD, throughout their evaluation of strategic alternatives, culminating in Baird’s role as a bookrunner on Alliance’s highly successful $950 million IPO in October 2025.

We’ve worked alongside Alliance and its sponsors over several years, through a variety of strategic decisions. Serving as bookrunner on the IPO reflects the long-term partnership we’ve built with both Alliance and BDT & MSD. We look forward to supporting Alliance as they enter their next chapter as a public company.

Mike Lindemann, Co-Head of Global Industrial Investment Banking

Landmark Transaction for an Industrial Leader

• Alliance Laundry launched its IPO aiming to raise $700 million, with the offering split between 61% primary shares and 29% secondary shares on behalf of BDT & MSD.
• By positioning Alliance alongside best-in-class HVAC, water and industrial companies and launching the IPO at an attractive discount to these groups, investors recognized the compelling value at entry.
• At IPO launch, two cornerstone investors—Capital International Investors and Kayne Anderson Rudnick—each indicated an interest in purchasing up to $100 million in the offering.
• The 7-day, multi-city roadshow featured 32 one-on-one meetings, targeted group sessions and large investor luncheons in New York and Boston.
• Final share count increased 10% for the benefit of BDT & MSD, with the IPO pricing at the high-end of the initial filing range at $22.00 per share.
• Following the exercise of the overallotment option (100% secondary), the total IPO size increased to $950 million at a $4.3 billion market cap. BDT & MSD received over $400 million in liquidity while retaining a 71% ownership stake post-IPO.
• Primary proceeds were used to pay down debt, bringing Alliance’s LTM net leverage to ~3.3x with a clear trajectory to below 3x—a key benchmark for many public institutional investors.
• The IPO priced at ~13x 2026E EBITDA, traded up ~13% on its first day, and is currently trading ~20% above its offer price.
• Largest Industrial IPO outside of the aerospace & defense and FIRE sectors since 2021.

Alliance was intentional about where it fit among top industrial peers and how it communicated its story, making sure its value proposition and strategy were clear and compelling. The attention paid to positioning was evident throughout the process and ultimately set the stage for a well-received IPO.

Mike Barina, Managing Director, Global Industrial Investment Banking

Key Takeaways for Issuers and Sponsors

• Alliance’s IPO exemplifies the strength of public market demand and the attractive valuation achievable through a listing—demonstrating that, for Alliance and BDT & MSD, accessing the public markets was the clear path to maximizing value.
• Engaging public institutional investors 12–24 months prior to a planned IPO—through “early look” meetings and events like Baird’s Annual Global Industrial Conference—is an increasingly critical driver of IPO readiness and success.
• Alliance’s IPO exemplifies best practices: the offering launched at a prudent discount to peers, priced at the top of the initial range and was upsized due to robust investor demand identified during the roadshow.
• Unlocking public market success requires issuers and sponsors to start early: craft a compelling equity story, benchmark against top peers, actively engage public institutional investors and research analysts and partner with industry-leading advisors like Baird.
• With the right preparation and support, a public debut is just the beginning of a long-term value creation story.
• Baird expects the public markets to remain open to best-in-class companies with leading market positions in 2026.

We focused on Alliance as a global leader and a premium asset with incredibly strong fundamentals and secular backdrop. Investors responded very positively to the company and management team, with the IPO pricing at the top of the range and trading up, driven by significant institutional interest and demand in Alliance as a core long-term holding.

Justin Holsen, Managing Director, Industrial Equity Capital Markets

Interested in learning more about this transaction? Connect with Baird Global Investment Banking.

Industrial Equity Capital Markets Team

Global Industrial Investment Banking Team