American Furniture Manufacturing operates 29 production lines from a 1.1 million square-foot facility, encompassing both stationary and motion product categories.

Compass Diversified Trust has acquired American Furniture Manufacturing for $92.5 million. Founded in 1998 and headquartered in Ecru, Mississippi, American Furniture is a leading U.S. manufacturer of promotional upholstered furniture with retail price points between $199 and $699.

$92.5 million represents under five and a half times American Furniture's earnings before interest, taxes, depreciation and amortization (EBITDA).

I. Joseph Massoud, Compass' CEO, said, "American Furniture possesses the characteristics we look for in all of our businesses, including market leadership in a niche industry, strong free cash flow and proven leadership."

American Furniture's senior managers will continue to manage the business under the new ownership.

American Furniture Manufacturing operates 29 production lines from a 1.1 million square-foot facility, encompassing both stationary and motion product categories.