W.S. Badcock Corporation
W.S. Badcock Corporation, D/B/A Badcock Home Furniture &More (“Badcock”), a fifth-generation family business, was founded in 1904 and based in Mulberry, Florida, is a leading home furnishings retail company in the Southeast U.S. The Company operates 383 stores in eight states, with a combination of corporate-owned locations and dealer-owned locations. The stores carry a complete line of furniture, appliances, bedding, electronics, home office equipment, accessories and seasonal items. Badcock was acquired by publicly-traded Franchise Group, Inc. (NASDAQ: FRG). FRG is headquartered in Delaware, Ohio, and owns and operates numerous franchised and franchisable businesses, such as Pet Supplies Plus, American Freight, The Vitamin Shoppe, Buddy’s Home Furnishings and Sylvan Learning. FRG currently operates more than 3,000 locations, primarily in the U.S. Mann, Armistead & Epperson, Ltd. served as the exclusive financial advisor to W.S. Badcock Corporation.
Mor Furniture For Less, Inc.
Mor Furniture For Less, Inc. was originally formed as The Waterbed Emporium of California, Inc. in 1977 in San Diego, California. Over the years, Mor Furniture For Less, Inc. rolled out full line furniture showrooms offering a huge selection of high quality furniture and bedding at the best value for its’ customers. The Company operated nearly 40 full line retail stores at the time of the transaction. The Company sold a majority ownership interest to Healthcare Group (Hong Kong) Co., Ltd, a public company headquartered in Hong Kong and registered on the Shanghai Stock Exchange, doing business as MLILY USA, which manufactures and distributes sleep products in the form of memory foam mattresses and pillows through retailers, dealers, and online stores in the United States. Mann, Armistead & Epperson, Ltd. served as the exclusive financial advisor to Mor Furniture For Less, Inc.
Southern Motion, Inc.
Southern Motion, Inc., founded in 1969, is a privately held business headquartered in Pontotoc, Mississippi that designs, manufactures and markets upholstered motion furniture. The Company, which operates multiple facilities and employs approximately 1,500 workers, is vertically integrated with its own frame and cushion plants and is considered to be a leader in product development. Many of the original investors remained stockholders in the Company and desired some form of liquidity for their investment while some of the senior management team desired to remain as investors. Mann, Armistead & Epperson, Ltd. was engaged by the Board of Directors as its exclusive financial advisor to explore various strategic options which would satisfy the multiple objectives of all parties involved. After conducting a wide spread sell-side process, the Company was successfully recapitalized by Gain/Line Capital Partners along with senior management. This transaction provided liquidity for those long-standing original investors and also an opportunity for management to continue to be equity owners, operate the Company, and take advantage of market opportunities.
Art Van Furniture, Inc.
Art Van Furniture, Inc. was founded in 1959 by Mr. Art Van Elslander and is the largest furniture and mattress retailer in the upper Midwest. Art Van operates a total of 110 retail locations in Michigan, Indiana, Ohio and Iowa, including Art Van Showrooms, Clearance Centers, PureSleep Mattress Stores, Art Van Flooring and Scott Shuptrine Interiors. Mr. Van Elslander, in addition to being the founder and chairman of Art Van, was extremely active in Art Van and the overall furnishings industry until well into his 80’s, at which time he elected to seek liquidity for himself and for his family members. While the recapitalization transaction, due to its complexity, had multiple legal and financial advisors involved, Mann, Armistead & Epperson, Ltd., who had served as a confidential advisor to Mr. Van Elslander over many years, had the pleasure of serving as Special Advisor to Mr. Van Elslander in this recapitalization transaction with Thomas H. Lee Partners.
Raffel Systems
Raffel Systems was started in 1982 to design a system of motors and vibration modes to be integrated into massage furniture. Subsequently, the Company realigned itself as to an innovative electronic controls and components supplier to many furniture manufacturers around the globe. Today, Raffel is a leading innovator of proprietary electronic controls and related components for motion furniture, industrial, and theater seating applications. During 2016, the Company’s prior ownership elected to seek liquidity and hired a financial advisor to guide it through the transaction. In connection with this process, Mann, Armistead & Epperson, Ltd. was hired by Cathay Capital Private Equity to assist in its formal due diligence process, to be an overall furnishings industry advisor, and provide certain industry data. Mann, Armistead & Epperson, Ltd. remains a Strategic Advisor to the Raffel Board of Directors.
Bassett Furniture Industries, Inc.
Weiman Upholstery, located in Christiansburg, Virginia, had been a division of Bassett Furniture Industries, Inc. since 1979. Weiman specializes in, and is considered to be among the leaders in, designing and manufacturing high-style contemporary seating and furniture, including product lines designed by renowned international designers such as Vladimir Kagan and Stanley Jay Friedman. Preview Furniture, Inc., another high-end contemporary manufacturer, was acquired by Bassett in 2003 and placed under the Weiman/Preview Upholstery Division. Mann, Armistead & Epperson, Ltd. was hired by Bassett Furniture to locate a potential acquirer for the Weiman/Preview Upholstery Division since it did not strategically fit with Bassett’s core business and/or its growing emphasis on its retail store network. Interlude Home, Inc. acquired Weiman/Preview and is a privately owned upscale accessories and accent furniture supplier, headquartered in Trumbil, Connecticut, and specializes in fashion-forward trend items.
Barcalounger Corp.
Barcalounger Corporation, owned by Citicorp Venture Capital, Ltd., is headquartered in Rocky Mount, NC and is a manufacturer of upper-end leather motion furniture using the brand name Barcalounger, as well as an importer of leather motion and stationary furniture using the brand name Wayne Phillips. The company markets its products to retailers across the U.S. and Canada. Barcalounger was aquired by Hancock Park Associates, a California based private equity firm. Mann, Armistead & Epperson, Ltd. advised Barcalounger Corporation in this transaction.
American Furniture Company
American Furniture Company d/b/a American Home was recapitalized by Mr. Lee Blaugrund, President and Chief Executive Officer of American Home and Hancock Park Associates, a California based private equity firm. American Home is a leading retailer of furniture, bedding and other home products in the Southwest market of the United States. Headquartered in Albuquerque, New Mexico, American Home operates ten retail locations in New Mexico and Arizona. Mann, Armistead & Epperson, Ltd. advised American Home.
Durham Furniture Industries, Inc.
Founded in 1896 and based in Ontario, Canada, Durham Furniture Industries, Inc. is a manufacturer of medium to upper-medium priced bedroom furniture. Mann, Armistead & Epperson, Ltd. was hired by Durham’s Board of Directors to serve as the Company’s financial advisor to maximize long-term shareholder value and to assist in long-term strategic planning. Once hired, our firm realized Durham’s immediate need to recapitalize its long-term credit facilities. More specifically, Durham needed senior credit facilities which matched the changing landscape of the furnishings industry. Our firm assisted in structuring, negotiating and executing Durham’s new credit facilities with the Royal Bank of Canada.
Harlem Furniture Sponsor Group
Harlem Furniture, Inc. is a fifteen store, mid-priced furniture retailer in the greater metropolitan Chicago area. Harlem specializes in complete furniture room solutions for the home, including bedding and accessories. Harlem was recently recapitalized by Bear Growth Capital Partners, Pouschine Cook Capital Management, LLC, Mercantile Capital Partners, LLC and Bruce Berman, Chief Executive Officer of Harlem Furniture. Mann, Armistead & Epperson, Ltd. served as advisor to the sponsor group of Bear Growth Capital Partners, Pouschine Cook Capital Management, LLC and Mercantile Capital Partners, LLC.
American Furniture Manufacturing, Inc.
American Furniture Manufacturing, Inc. is a leading manufacturer and supplier of upholstered furniture for the promotional market segment. American offers a full line of popular stationary and motion sofas, loveseats, and reclining and occasional chairs. The Company was acquired by AFM Holdings, LLC, a holding company formed by the Investor Group of Hunt Private Equity Group, Hampshire Equity Partners and Pittco Capital Partners. Mann, Armistead & Epperson, Ltd. served as advisor to AFM Holdings.
LADD Furniture, Inc.
LADD Furniture, Inc. was a $500.0 million manufacturer and distributor of residential and contract furnishings. Our relationship with LADD spanned over a decade and involved several corporate finance and research related projects. In 1996, and as part of LADD’s operational and financial restructuring, we advised LADD in connection with the private placement of $190.0 million of senior notes. Several years later, as this sector of the industry continued to consolidate, we initiated discussions concerning the strategic benefits of a merger with one of the industry’s largest manufacturers, La-Z-Boy, Incorporated. Within two months we advised LADD’s Board of Directors on the merger between LADD and La-Z-Boy. At this time, this acquisition represented one of the largest transactions in the furnishings industry sector. Mann, Armistead & Epperson, Ltd. initiated this transaction, assisted in structuring the offer and advised the Board of Directors.
DMI Furniture, Inc.
DMI Furniture, Inc. based in Louisville, Kentucky, with a significant amount of its operations in mainland China, is a manufacturer and distributor of residential and office furnishings. This company represents a typical long-term relationship for our firm. Over an 8-10 year period, we assisted DMI through several tiers of transactions which ultimately resulted in its merger with Flexsteel Industries, Inc. Prior to the Flexsteel transaction, we advised DMI’s Board of Directors regarding its redemption of its preferred stock and provided valuation services for the company. In addition, one of our professionals served on DMI’s Board of Directors and as Chairman of its Audit Committee. In August 2003, we successfully advised a Special Committee of DMI’s Board of Directors regarding its merger with Flexsteel Industries, Inc. Mann, Armistead & Epperson, Ltd. initiated this transaction, assisted in structuring the offer and advised the Special Committee in connection with this transaction.
Falcon Products, Inc.
Falcon Products, Inc., based in St. Louis, Missouri, is a $300 million manufacturer and distributor of tables and seating for the contract furnishings industry. Our relationship with Falcon has spanned many years through equity research coverage. This in depth knowledge played a critical role when Falcon went to the market to refinance its senior credit facilities. Mann, Armistead & Epperson, Ltd. was hired by Back Bay Capital to assist in understanding the contract furnishings sector and with relevant valuation information for Falcon and its divisions.
Pulaski Furniture Corp.
Founded in 1955, Pulaski Furniture Corporation is a manufacturer and distributor of residential home furnishings with operations in Virginia and China. Mann, Armistead & Epperson, Ltd.’s relationship with Pulaski spans over a twenty year period with a wide variety of research and corporate finance services being performed. Over the years we published securities research on Pulaski, divested its Craftique subsidiary, acquired Dawson Cabinet Company and assisted the Board of this public company in establishing a “Poison-Pill” anti-takeover mechanism. Our most recent transaction with Pulaski was a management led “going-private” transaction. With very little “float” and a mid-sized market cap, we approached Pulaski management about seeking a financial partner. With Board approval we solicited a small group of financial partners and Quad-C Management, Inc., a Virginia based private equity firm with $500 million under management was selected to participate in the management led buy out transaction.
Winsloew Furniture, Inc.
Based in Birmingham, Alabama and with approximately $300 million of revenue, WinsLoew, Inc. (d/b/a Brown Jordan) is a designer, manufacturer and distributor of luxury retail and contract furnishings. Mann, Armistead & Epperson, Ltd. first became involved with the Company when Trivest, Inc., a Florida based private equity firm acquired Winston, Inc. Subsequent to this transaction, our firm published research on Winston and assisted in the merger between Winston and Loewenstein Group to create WinsLoew, Inc. and assisted in the divestiture of Continental Engineering, Inc. (a California based subsidiary). In our most recent transaction, we advised a Special Committee of WinsLoew’s Board of Directors in a $291.0 million “going-private” transaction.
