Based out of Pontotoc, MS, American Furniture Manufacturing (“AFM”) was one of the country’s leading manufacturer of promotional upholstered residential furniture sold to regional independent retailers, rent-to-own dealers and distributors nationwide. The company enjoyed dramatic growth since its inception in 1998 by offering a full line of high quality, inexpensive sofa, love seat and recliner groups for immediate delivery on the company’s own fleet of trucks.
Clearview acquired 80% of the stock of the company while allowing the seller to maintain 20% ownership as well as operating control of the business. This arrangement, which is a key element of many of Clearview’s transactions, met the estate planning goals of the seller while also facilitating his desire to continue to lead the growth of his company. All of the other key managers acquired ownership stakes as a result of the transaction. In addition, Clearview structured the transaction to provide ample capital to support the capital expenditures and working capital required for the company to maintain its 40%+ annual growth rate.
The platform transaction closed on September 21, 2001.
Clearview sold AFM on June 29, 2004.