December 18, 2024

Mann, Armistead & Epperson Represents Southerland in its Acquisition by 3Z Brands

3Z Brands (“3Z”), a vertically integrated manufacturer, wholesaler, retailer, and direct-to-consumer distributor of award-winning sleep products, today announced its acquisition of Southerland, Inc., a leading producer of high-quality mattresses serving brick-and-mortar retailers for over 120 years.

The acquisition broadens 3Z’s national manufacturing footprint, adding four strategically located facilities across Nashville, TN; Phoenix, AZ; Tualatin, OR; and Oklahoma City, OK. The combination positions 3Z to better serve its growing wholesale and direct-to-consumer operations while enhancing efficiencies and product innovation.

“For more than a century, Southerland has built an outstanding reputation for quality, craftsmanship, and customer service,” said John Merwin, Chief Executive Officer, 3Z Brands. “We are excited to integrate Southerland’s expertise and operations into our vertically integrated model. This acquisition allows us to expand production capacity and drive innovation while better serving our customers nationwide.”

Southerland has been a trusted name in the mattress industry, blending time-honored techniques with modern innovations to produce products known for exceptional comfort and support. Its four regional manufacturing hubs currently serve wholesale customers across 43 states, delivering unparalleled speed and efficiency.

3Z will begin integrating Southerland’s facilities immediately, designating its Nashville location as the company’s East Coast e-commerce hub. In addition, 3Z is committed to significant capital investment in the facilities, including the addition of advanced coilers, enhanced sewing equipment, and roll-pack machines. These investments will enable best­in-class production capabilities while maintaining 3Z’s focus on vertical integration, covering foam, coils, sewing, and distribution. The companies expect Southerland and its customers to benefit from enhanced efficiencies and product innovations as a result of this partnership.

Southerland selected the investment banking firm Mann, Armistead & Epperson to represent them in the transaction. Senior partners Michael B. Watson, Jr. and James M. Mann led the investment banking team throughout the process, ensuring a seamless ownership transition for Southerland’s management and stakeholders.

“This acquisition marks an exciting milestone for both Southerland and 3Z,” said Bryan Smith, Chief Executive Officer, Southerland. “Mann, Armistead & Epperson’s depth of experience and connections in the global mattress and furnishings market were invaluable in guiding us to this exciting new chapter for our teams and customers.”
Southerland will maintain its independent brand identity while operating alongside 3Z’s diverse portfolio of leading sleep brands.

ABOUT 3Z BRANDS
3Z Brands (“3Z”) is a vertically integrated manufacturer, direct-to-consumer brand portfolio, wholesaler, and retailer of award-winning sleep products. Headquartered in Arizona and New York, 3Z operates a portfolio of best-in-class sleep brands, including Helix, Brooklyn Bedding, Leesa, Birch, Bear, and Nolah. All of 3Z’s brands celebrate the power of personal preferences while focusing on outstanding product quality, having won countless independently reviewed awards. Additionally, 3Z provides mattress production solutions across the industry with world-class expertise in mattress engineering, achieved through meticulous attention to detail, cutting-edge equipment, and decades of industry experience. The company strives to deliver excellent sleep products to any and every door in America.

ABOUT SOUTHERLAND
Southerland has been making quality mattresses since 1893. Using only best-in-class materials and components, Southerland currently sells its line of mattresses and adjustable bases throughout 43 states. By implementing its stringent quality assurance program, Southerland manufactures mattresses that are backed by the company’s “making it right” philosophy that stands behind every product delivered. Each of its products is delivered to retailers via its wholly-owned transportation company. The company’s current four production and distribution facilities in Tennessee, Phoenix, Oklahoma, and Oregon, total more than 595,000 square feet.

Authored by MAE