by Acquisition includes Peak Living, Independent Furniture Supply, Delta Furniture Manufacturing and Southern Fibers
MEMPHIS, Tenn. — Financial services specialist SouthWorth Capital Management has acquired American Furniture Manufacturing and its respective brands, the company announced Monday.
Based in Ecru, Mississippi, the brands of AFM include Peak Living, Independent Furniture Supply, Delta Furniture Manufacturing and Southern Fibers.
The company did not disclose a purchase price or other terms of the transaction. However, it noted that AFM operates more than 700,000 square feet of manufacturing operations that employ more than 650 workers.
The company described AFM as a “vertically integrated manufacturer focused on upholstered residential furniture, including leather offerings designed for high-volume retail environments. The company operates across two distinct product tiers, Delta and Premier, allowing retail partners to offer multiple price points within their promotional packages while maintaining consistent quality and reliable supply.”
Based in Ecru, Mississippi, Peak Living specializes in stationary and motion upholstery, including recliners, while Tupelo-based Independent Furniture Supply describes itself as one of the largest foam fabricators in the U.S.
Pontotoc, Mississippi-based Delta Furniture Manufacturing specializes in stationary upholstery, and East Houlka, Mississippi-based Southern Fibers specializes in the manufacturing of fiber products.
SouthWorth said this network of companies “will allow retail partners to offer multiple price points within their promotional packages while maintaining consistent quality and reliable supply.”
“AFM controls key elements of its supply chain, from materials and foam production to hand-sewn upholstery, assembly and logistics,” the company added.
“American Furniture Manufacturing represents exactly the type of business we seek, a well-established company with strong fundamentals, experienced leadership and significant growth potential,” said Jeff Presley, SouthWorth Capital Management chairman and founder. “AFM’s vertical integration, customer-agnostic positioning and reputation for quality make it a compelling addition to our portfolio. We are excited to partner with the management team to accelerate growth and expand the company’s market reach.”
The company added that the acquisition aligns with its investment philosophy of acquiring companies with strong free cash flow and enhancing value through operational improvements and strategic synergies with the following strategic highlights:
+ Vertically integrated operations spanning materials sourcing, foam production, upholstery, assembly and logistics.
+ Two complementary product lines supporting multiple price points within promotional retail programs.
+ A customer-agnostic business model serving a broad range of retail partners.
+ Variable cost structure providing scalability and operational flexibility.
+ An experienced management team with deep industry relationships.
“This partnership provides AFM with the resources and expertise to reach our full potential,” said AFM Chief Operating Officer Matt Clayton. “SouthWorth’s track record of supporting portfolio companies, combined with their commitment to growth over cost-cutting, makes them the ideal partner for our next chapter.”
AFM President Chad Cunningham also shared his thoughts on the benefit to the company and its customers.
“We’re now positioned to be an even better partner to our customers,” Cunningham said. “With SouthWorth’s support, we can continue investing in our people, our processes and our ability to deliver reliable, well-made furniture at price points that matter to today’s consumer.”
