Man Wah acquires Gainline Recline Intermediate for $32 million

Man Wah Holdings Limited, through its indirect wholly-owned subsidiary MW USA Manufacturing, announced the acquisition of 100% interest in Gainline Recline Intermediate Corp. for $32,000,000. This transaction closed on December 18, 2025, making the target company a wholly-owned subsidiary, with its financial results, assets, and liabilities to be consolidated into the Group's statements.

Concurrently with the acquisition, MW HK Trading granted an interest-free loan of $26,670,335.51 to the Target Group to repay a US bank facility. The total acquisition value, including the debt retired at closing, amounts to approximately $58.7 million. Gainline Recline Intermediate, based in northern Mississippi, specializes in manufacturing and trading upholstered furniture under the Southern Motion and Fusion Furniture brands.

Man Wah anticipates significant synergies, including cross-selling opportunities through Gainline Recline Intermediate’s extensive distribution network of over 1,000 furniture retailers, along with cost savings from raw material procurement and improved manufacturing efficiency. The acquisition also expands Man Wah’s manufacturing capabilities in the United States, addressing evolving international trade dynamics.