Alliance Laundry Systems, a commercial laundry equipment manufacturer, is preparing for a US initial public offering, according to three sources familiar with the situation.

The Ripon, Wisconsin‑based company is aiming to launch post Labor Day, according to the sources.

The company could raise more than USD 500m, one source said; it is expected to seek a valuation in the USD 5bn–USD 7bn range, the sources said.

The company is viewed as a stable cash generator, one source added. The company will be compared to a host of industrial peers, two of the sources mentioned, including HVAC companies.

Alliance Laundry Systems is majority‑owned by merchant bank BDT & MSD Partners, which previously explored a sale of the business, as reported.

Alliance Laundry Systems declined to comment. BDT & MSD Partners did not respond to a request for comment.