Gainline Capital Partners LP, a New York-based private equity firm, announced that funds it manages have entered into an agreement to acquire Pontotoc-based Southern Motion Inc.
Financial terms of the deal were not disclosed.
Southern Motion, an upholstered furniture company founded in 1996, will retain its current senior management team, led by President and CEO Roger Bland.
In addition, they will “maintain a significant stake in the business,” according to a press release.
Bland, who joined Southern Motion in 2008 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.”
Southern Motion is one of the largest furniture employers in Northeast Mississippi, with more than 1,500 workers at its factories in Pontotoc and Baldwyn.
Added Bland, “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.”
Gainline, founded in 2015, is a private equity firm that invests in U.S.-based middle market companies. The firm makes controlling and minority investments in acquisitions of private companies, corporate divestitures, recapitalizations, management buyouts and growth equity, the company said. 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. We seek to partner with fundamentally sound businesses that are market leaders in their respective niches.”
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.”