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From Home Furnishing Business

Private Equity Firm to Acquire Southern Motion

Motion upholstery producer Southern Motion has agreed to be acquired by the private equity firm Gainline Capital Partners LP.

Terms of the deal were not disclosed, but Gainline said Southern Motion’s senior management team, led by President and CEO Roger Bland, will remain in place and have “a significant stake” in the business.

"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,” said Bland, who has been with Southern Motion since 2008. “Gainline demonstrated consistently throughout the process why they are an excellent partner for entrepreneur-driven companies."

Founded in 1996 by Guy Lipscomb and Larry Todd, Southern Motion is based on Pontotoc, Miss., and has more than 1,500 employees at several Northern Mississippi factories.

"We are very excited to partner with Roger and the Southern Motion management team to help them better execute their vision,” said Rick Sullivan, a managing director with Gainline. “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."

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."

The investment firm Mann, Armistead & Epperson, Southern Motion’s longtime longtime financial adviser, served as investment banker to the company in the transaction.

Founded in 2015, Gainline focuses on middle market companies that are market leaders in their respective niches. According to the firm’s website, it typically makes equity investments of $10 million to $50 million.  

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