3Z Brands, a vertically integrated manufacturer, wholesaler, retailer and direct-to-consumer distributor with six distinct brands, has acquired mattress manufacturer Southerland.
John Merwin, CEO of 3Z, tells Bedding News Now that the companies have been exploring this partnership for the past six months and that it’s been a thoughtful, deliberate process. “Both teams have worked hard to ensure this is the right fit, and we couldn’t be more excited to finally make it official,” he adds.
For over 120 years, Southerland has produced high-quality mattresses for brick-and-mortar retailers. With four strategically located manufacturing facilities in Nashville, Tennessee; Phoenix; Tualatin, Oregon; and Oklahoma City, Southerland efficiently serves wholesale customers in 43 states.
“Southerland is a natural fit within our portfolio and will function alongside our current wholesale brand,” Merwin says. “We have no intention of changing what Southerland has done so well — instead, we’re focused on enhancing their capabilities. By integrating insourced foam and coils from our Phoenix facility and tapping into our advanced R&D expertise, we’re better positioned to collaborate with our retail partners to deliver innovative, high-performing sleep products tailored to their unique needs. We are truly excited to build on Southerland’s success and take it to new heights.”
The acquisition of Southerland enables the strategic expansion of 3Z’s nationwide manufacturing footprint, positioning the company to serve a new group of wholesale customers from a geographic perspective while reducing delivery costs and timelines.
3Z will begin integrating Southerland’s four facilities, with its Nashville location serving as the company’s East Coast e-commerce hub. 3Z is also committed to significant capital investment in the facilities, including the addition of advanced coilers, enhanced sewing equipment and roll-pack machines to enable best-in-class functionality.
Leveraging 3Z’s vertically integrated approach to foam, coils and sewing, the companies expect Southerland and its customers to benefit from enhanced efficiencies and product innovations.
“Many things attracted us to Southerland, and they bring so much to the table: a centurylong legacy, successful partnerships with leading mattress retailers across the U.S., a nationwide manufacturing footprint and an owned transportation business,” Merwin says. “We’re also incredibly impressed by Southerland’s passionate team and their deep industry knowledge. We see tremendous potential to grow together and leverage our combined strengths to better serve the industry
So how soon can the industry expect to see changes?
“For now, it’s business as usual,” Merwin says. “We want the Southerland team to keep doing what they do best. That said, we’re already planning significant investments to enhance Southerland’s manufacturing capabilities, including insourcing foam and coils from our Phoneix facility and adding coil production at Southerland’s locations. The industry can expect meaningful changes to unfold over the next year and beyond.”
Bryan Smith, president of Southerland, adds: “We’re thrilled to be joining forces with 3Z Brands, a company that shares our dedication to craftsmanship and customer satisfaction. This partnership strengthens our ability to serve our loyal customers with the quality they expect while giving us access to new resources and expertise to help us grow. Together, we’re well positioned to continue delivering excellence, with exciting opportunities to bring our products to even more customers nationwide.”
