Share this on

Bermex completes deal for 80.5% stake in Shermag

Is expected to take company private

Michael Knell -- Furniture Today, October 16, 2009

SHERBROOKE, Quebec — Groupe Bermex has completed its acquisition of Shermag Inc., including Jaymar Furniture, taking Shermag out of court-ordered protection from its creditors. Over the next several weeks, the new owner is expected to take the company private.

The deal, completed Wednesday, had won the approval of the Québec Superior Court and creditors of Shermag, a full-line furniture manufacturer and importer.

Groupe Bermex received nearly 41.7 million shares in Shermag for a cash payment of C$1.25 million, which was used to pay dividends to creditors.

The acquisition also saw the retirement of Shermag's financing agreement with Geosam Investments Ltd., a company controlled by George Armoyan, who is also chairman of Clarke Inc., a Halifax, Nova Scotia-based investment firm that had been Shermag's largest shareholder.

In a statement, Bermex said it plans to restructure and re-launch Shermag.

The deal gives Bermex, a Maskinongé, Quebec-based furniture manufacturer, 80.5% of the outstanding shares of Shermag. Previously, Bermex had been Shermag's second largest shareholder with a 19.6% stake.

Groupe Bermex president Richard Darveau, meanwhile, has joined the Shermag board of directors while Clarke Inc.'s representatives on the board, Melinda Lee and Robert Normandeau, have resigned.

"We're taking all of the steps necessary to take the company private," said Daniel Walker, Shermag's new president and chief of commercial operations.

Although no details were released, Groupe Bermex has indicated that it is making offers to the owners of the remaining 19.5% of Shermag. Once it controls 88% of the outstanding shares, it will be able to take the company private.

Share this on

Shareholders to vote on taking Shermag private

Feb 17, 2010

Court approves sale of Shermag to Bermex

Aug 17, 2009

Quebec court approves Bermex buy of Shermag

Aug 13, 2009

Ron Klosterman to retire as Flexsteel president, CEO

Sep 30, 2011

Shermag wins sale approval, CCAA extension

Sep 9, 2008

Also by this author

Also by Michael J Knell

Featured Company

FurnitureCore.com

FurnitureCore.com is a dynamic web application aimed at the furniture industry. Retailers and manufacturers alike will find our deep reserve of tools to be exactly what their furniture business needs.www.furniturecore.com... more