Shermag Acquires Jaymar Furniture

On May 16, 2003, Shermag Inc. acquired all the shares of Jaymar Furniture Company from a group comprising a private equity fund and management. The all cash purchase price was financed as part of the renewal and expansion of Shermag’s credit facilities, which increased its borrowing capacity from approximately $40 million to $100 million. Shermag, headquartered in Sherbrooke, Quebec, produces and markets high-quality residential furniture. Montreal-based Jaymar is known for its assortment of fine quality leather and fabric upholstered sofas, chairs and loveseats.

Shermag was represented by in-house counsel Josée Bélanger, and by Davies Ward Phillips & Vineberg LLP with a team that included Peter Mendell, Laurence Detière, Jeremy Spry, Alain Roberge and Mark Brender. Jaymar was represented in Canada, by Andrew Cohen, Stavroula Makris and Normand Quesnel of Heenan Blaikie LLP, as special local counsel, and by Francine Wiseman and Didier Fréchette of Mendelsohn acting as special tax counsel; and in the U.S., by Jonathan Kent, Mark Degler and Terry Gentle of Miller & Martin LLP in Chattanooga, Tennessee.