Alliance Laundry Systems Completes Acquisition.

RIPON, Wis.--(BUSINESS WIRE)--May 5, 1998--Alliance Laundry Systems LLC announced today that it has completed the acquisition of Raytheon Commercial Laundry (RCL), the commercial laundry equipment manufacturing business of Raytheon Company (NYSE:RTNA)(NYSE:RTNB), for approximately $358 million.

Alliance Laundry Systems, headquartered in Ripon, Wisconsin, was founded by the senior management team of RCL and Bain Capital, Inc. of Boston, one of the nation's leading private equity firms, for the purpose of this acquisition. The new, privately held Company will be led by Tom L'Esperance, Chairman and Chief Executive Officer, and formerly President of RCL.

"We are pleased to complete this transaction and to join in partnership with Bain Capital," L'Esperance stated. "As our new name suggests, this is a continuing alliance of three of the premier brand names in our industry, Speed Queen(R), UniMac(R) and Huebsch(R). The new independent company is committed to maintaining its position of market leadership by offering superior quality products and innovative services and solutions."

Alliance Laundry Systems is the largest commercial laundry equipment manufacturer in North America, with plants in Ripon, Wisconsin; Marianna, Florida and Madisonville, Kentucky. Its products are marketed to coin stores, multi-family housing locations, and on-premise laundries and dry cleaners throughout the world. "This acquisition represents the next chapter in the success story of this business," said Jeff Brothers, Senior Vice President Sales and Marketing. "We have no plans to alter the strategies that have made the business successful." The Company does not anticipate any changes in employment levels as a result of this transaction.

Bain Capital's Managing Director, Edward Conard, added, "We are excited by the prospect of investing in Alliance Laundry Systems. This is a unique opportunity to partner with a strong management team, operating a well-established enterprise in a stable industry, with solid brand equity in its products."

Bain Capital, founded in 1984, is a private equity firm, which focuses on identifying companies where it can add value by committing the firm's capital, managerial expertise, and strategic planning capabilities. The firm manages over $2.0 billion in capital and to date has made over 100 equity investments. Bain Capital's portfolio currently consists of companies that generate revenues of approximately $10 billion.

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