BDT Capital Discloses Massive $2.9 Billion Stake in Alliance Laundry Stock

What happened

In a quarterly disclosure filed with the U.S. Securities and Exchange Commission (SEC filing) on Feb. 17, 2026, BDT Capital Partners reported acquiring 140,751,696 shares of Alliance Laundry Holdings (NYSE:ALH). This new position was established with an estimated transaction value of $2.86 billion, based on the average closing price during the quarter. The quarter-end value of the stake also totaled $2.86 billion, reflecting both the share accumulation and any price changes over the period.

What else to know

This was a new position for BDT Capital Partners; the ALH stake represented 90.17% of the fund’s reported U.S. equity assets as of Dec. 31, 2025

• Top holdings after the filing:
  • Alliance Laundry: $2.86 billion (90.2% of AUM)
  • Under Armour: $312.24 million (9.8% of AUM)
  • Cibus: $110,333 (0.0% of AUM)

As of March 6, 2026, ALH shares were trading at $20.76, down 6% from its October 2025 IPO price.

Company overview

Company snapshot

Alliance Laundry:

• Designs, manufactures, and sells commercial laundry washers, dryers, service parts, digital products, and customer financing solutions.
• Generates revenue through equipment sales, parts, and value-added services distributed via a network of distributors and direct channels.
• Serves healthcare facilities, hotels, laundromats, communal laundry sites, fire stations, and other commercial customers in North America and internationally.

Alliance Laundry Holdings is a leading provider of commercial laundry equipment and related services, with a diversified product portfolio and a broad customer base. The company leverages a network of distributors and direct sales to reach institutional and commercial clients. Its established market presence positions it as a key player in the commercial laundry industry.

What this transaction means for investors

This recent disclosure from private equity firm BDT Capital is, in general, a fascinating situation. The PE firm scooped up Alliance Laundry from the Ontario Teachers’ Pension Plan in 2015 and brought the company public in October last year. This extends a pretty good run for PE firms taking businesses over only to spin them back out on the public markets years later. While we don’t know exactly how much of ALH stock BDT will continue to hold, it currently owns 71% of Alliance Laundry’s shares. It will be interesting to watch and see what they do over the next few quarters.

As for the stock itself, I try not to get involved in new IPOs for at least a year or so, as I want more information from the companies and want to give them time to settle in as publicly traded stocks. That said, Alliance Laundry is the No. 1 player in its niche and is twice the size of its next-largest peer. It holds a 40% market share of the North American commercial laundry market and has grown sales by 10% annually since 2010.

While its leadership positioning and steady growth are promising, the company trades at an EV/EBITDA ratio of 16, so it isn’t deeply discounted by any means, especially given its hefty 3.1 times debt-to-EBITDA ratio. I’m intrigued by the stock but would like to give it some more time, especially given the risk that BDT gradually unwinds its massive stake in the company, which could put further pressure on the stock’s share price. This is one where I just want to see the smoke clear and see how things look after.

Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool recommends Under Armour. The Motley Fool has a disclosure policy.