SouthWorth Capital Management, a Memphis-based family office focused on lower-middle-market investments, has acquired American Furniture Manufacturing (AFM) and its family of companies, adding a vertically integrated producer of upholstered residential furniture to its manufacturing portfolio.
The transaction pairs SouthWorth’s operational approach with AFM’s more than 45-year operating history supplying upholstered residential products—including leather offerings—geared toward high-volume retail environments. Financial terms were not disclosed.
AFM is headquartered in Ecru, Mississippi, and operates across two product tiers—Delta and Premier—designed to help retail partners offer multiple price points within promotional packages while maintaining consistent quality and supply reliability.
The company’s footprint includes more than 700,000 square feet of manufacturing and assembly space and a workforce of more than 650 people. AFM also controls key portions of its supply chain through subsidiaries Peak Living, Independent Furniture Supply, Delta Furniture Manufacturing, and Southern Fibers, spanning materials and foam production through hand-sewn upholstery, assembly, and logistics. AFM said it produces more than 2,000 pieces of furniture daily and serves a mix of national and regional retailers and wholesalers.
SouthWorth said the acquisition aligns with its investment strategy of acquiring businesses with strong free cash flow and driving value through operational improvements and strategic synergies. SouthWorth highlighted AFM’s vertical integration, customer-agnostic positioning, variable cost structure, and management team experience as central to its investment thesis, with plans focused on accelerating growth and expanding AFM’s market reach.
KEY QUOTES:
“American Furniture Manufacturing represents exactly the type of business we seek, a well-established company with strong fundamentals, experienced leadership, and significant growth potential. 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.”
Jeff Presley, Chairman and Founder, SouthWorth Capital Management
“This partnership provides AFM with the resources and expertise to reach our full potential. 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.”
Matt Clayton, Chief Operating Officer, American Furniture Manufacturing
“We’re positioned to be an even better partner to our customers. 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.”
Chad Cunningham, President, American Furniture Manufacturing
