Gainline Capital Partners LP (Gainline) and upholstered furniture manufacturer, Southern Motion, Inc. (Southern Motion) announces that funds managed by Gainline have entered into an agreement to acquire the company. The terms of the deal were not disclosed.
Southern Motion's current senior management team, led by President and Chief Executive Officer Roger Bland, who joined the company in 2008, will remain in place and maintain a significant stake in the business.
Mr. Bland said, "This deal allows our shareholders, many who have been investors for more than 20 years, to receive a return on their investment while providing a great resource for the existing management team. Gainline demonstrated consistently throughout the process why they are an excellent partner for entrepreneur-driven companies."
Rick Sullivan, a Managing Director with Gainline, said, "We are very excited to partner with Roger and the Southern Motion management team to help them better execute their vision. This investment was an opportunity to apply the Gainline approach of a thoughtful and conservatively structured equity investment in partnership with a first-rate management team to support long-term growth and continued success."
Mr. Bland added, "We are grateful to our founders Guy Lipscomb and Larry Todd, our original investors and are very proud of our entire Southern Motion team whose dedication and commitment have made this company one of the largest and most successful companies in the furniture industry. We are also thankful to the State of Mississippi and local community leaders for providing their support and are looking forward to continued growth in this region."
About Southern Motion
Southern Motion, founded in 1996, currently employs over 1,500 people in five Mississippi-based facilities spanning over 1.5 million square feet. The Company is a domestic producer of upholstered motion furniture incorporating original styling, quick delivery and high quality standards while providing one of the most comprehensive special order programs in the industry. Motion furniture contains a mechanism that enables the product to change seating positions.
About Gainline Capital Partners LP
Gainline Capital Partners LP is a private equity firm that invests in United States based middle market companies. The firm makes both controlling and minority investments in acquisitions of private companies, corporate divestitures, recapitalizations, management buyouts and growth equity. Gainline offers a growth-oriented model to help businesses develop and execute their vision, maneuver through any adversity that might arise and maximize value over the long term.
