SouthWorth Capital Management Expands Manufacturing Footprint with Acquisition of American Furniture Manufacturing
SouthWorth Capital Management, a Memphis-based family office focused on lower middle-market investments, has announced a strategic acquisition of American Furniture Manufacturing (AFM) and its affiliated companies. This acquisition represents a significant step in SouthWorth’s ongoing efforts to build a diversified, vertically integrated manufacturing portfolio while supporting companies with strong fundamentals and growth potential.
Founded more than 45 years ago, AFM has built a reputation as a leading manufacturer of upholstered residential furniture for the American consumer. The company, headquartered in Ecru, Mississippi, specializes in high-quality, reliable furniture designed for high-volume retail environments. Its operations are fully vertically integrated, encompassing materials sourcing, foam production, hand-sewn upholstery, assembly, and logistics, allowing AFM to maintain strict quality control and deliver consistent performance to its retail partners.
AFM is a company with deep roots in furniture manufacturing and a proven ability to deliver well-made, reliable products,” said Jeff Presley, Chairman and Founder of SouthWorth Capital Management. “Their strong operational foundation, experienced leadership, and vertical integration make them an ideal fit for our investment strategy. We look forward to partnering with the management team to accelerate growth, expand market reach, and enhance operational efficiency.”
AFM operates across two primary product lines—Delta and Premier—offering retail partners multiple price points without compromising on quality. This dual-tier structure allows the company to cater to a wide range of consumers while maintaining flexibility in promotional programs. Through its subsidiaries, including Peak Living, Independent Furniture Supply, Delta Furniture Manufacturing, and Southern Fibers, AFM controls critical elements of its supply chain. These include in-house materials and foam production, upholstery, assembly, and distribution, collectively spanning more than 700,000 square feet of manufacturing and assembly space and employing over 650 people.
The partnership with SouthWorth provides AFM with the resources and strategic support to unlock new opportunities for growth,” said Matt Clayton, Chief Operating Officer of AFM. “With their operational expertise and commitment to long-term growth rather than cost-cutting, we are well-positioned to enhance our processes, invest in our people, and continue delivering high-quality furniture that meets the needs of today’s consumers.”
AFM President Chad Cunningham emphasized the company’s commitment to customers: “This partnership strengthens our ability to serve our retail partners effectively. With SouthWorth’s backing, we can further invest in our operations, improve efficiencies, and ensure that our products remain reliable and competitively priced.”
The acquisition aligns closely with SouthWorth’s investment philosophy, which focuses on acquiring businesses with strong free cash flow and scaling value through operational improvements and strategic initiatives. Key strategic benefits of the acquisition include:
- Vertically Integrated Operations: AFM’s control of its supply chain—from raw materials and foam production to upholstery, assembly, and logistics—ensures high-quality products, operational efficiency, and supply reliability.
- Diversified Product Lines: Delta and Premier product lines provide flexibility in pricing and promotional strategies, appealing to multiple consumer segments.
- Customer-Agnostic Business Model: AFM serves a broad base of retail partners, ensuring stability and reducing dependency on any single client.
- Scalable Cost Structure: The company’s flexible cost model supports operational scaling and adaptation to market demands.
- Experienced Leadership: AFM’s management team brings decades of industry knowledge and relationships, providing a strong foundation for future growth.
This acquisition is a testament to SouthWorth’s approach of partnering with well-established businesses that possess strong fundamentals and growth potential,” Presley added. “AFM’s combination of vertical integration, customer-focused operations, and high-quality manufacturing capabilities makes it a natural addition to our portfolio. We are excited to collaborate with the team to further enhance the company’s value and market presence.”
The partnership between SouthWorth and AFM marks a pivotal moment in both organizations’ journeys, setting the stage for continued expansion, innovation, and operational excellence in the American furniture manufacturing sector.
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.
