SouthWorth Capital Management Acquires American Furniture Manufacturing

Strategic acquisition strengthens SouthWorth’s manufacturing portfolio with leading vertically integrated furniture producer

MEMPHIS, Tenn.--(BUSINESS WIRE)--SouthWorth Capital Management, a Memphis-based family office specializing in lower middle market investments, today announced the acquisition of American Furniture Manufacturing (AFM) and its family of companies. The transaction pairs SouthWorth’s operational expertise with AFM’s more than 45 years of experience manufacturing upholstered residential furniture for the American consumer.

Headquartered in Ecru, Mississippi, AFM is 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.

Through its subsidiaries Peak Living, Independent Furniture Supply, Delta Furniture Manufacturing, and Southern Fibers, AFM controls key elements of its supply chain, from materials and foam production to hand-sewn upholstery, assembly, and logistics. Collectively, the companies operate more than 700,000 square feet of manufacturing and assembly space and employ over 650 people.

“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 SouthWorth Capital Management Chairman and Founder Jeff Presley. “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 acquisition aligns with SouthWorth’s investment philosophy of acquiring companies with strong free cash flow and enhancing value through operational improvements and strategic synergies. Key strategic highlights include:

• Vertically integrated operations spanning materials sourcing, foam production, upholstery, assembly, and logistics
• Two complementary product lines supporting multiple price points within promotional retail programs
• Customer-agnostic business model serving a broad range of retail partners
• Variable cost structure providing scalability and operational flexibility
• 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.”

“We’re positioned to be an even better partner to our customers,” said AFM President Chad Cunningham. “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.”

About American Furniture Manufacturing

American Furniture Manufacturing is a vertically integrated furniture procurement, design, and contract assembly company serving the low-to-mid price furniture market. With more than 45 years in business, AFM operates through multiple subsidiaries including Peak Living, Independent Furniture Supply, Delta Furniture Manufacturing, and Southern Fibers. The company produces over 2,000 pieces of furniture daily and serves a diverse customer base of national and regional retailers and wholesalers.

About SouthWorth Capital Management

Founded in 1992, SouthWorth Capital Management is a Memphis-based family office that focuses on acquiring small to mid-size companies and transforming them into strategic assets through a value-driven model built on scale, cross-selling, and disciplined cash flow management. SouthWorth provides an attractive alternative to traditional private equity, offering business owners a path to growth without sacrificing operational integrity or legacy. More information can be found at www.southworthcapitalmanagement.com.