Group Acquires Large Share Of Shermag

March 6, 2007  by in UnCategorized   

By Home Furnishings Business in Case Goods on March 2007 Clarke Inc., an “activist” investor group based in Halifax, Nova Scotia, announced Tuesday that it has acquired more than one-sixth of the outstanding shares of Shermag, which recently announced a sharp drop in sales.

In a news release, Clarke officials described the firm as an “activist catalyst investor” with a diversified portfolio of strategic and opportunistic investments. The announcement said Clark now holds 2.37 million shares of Shermag, or about 17.82 percent of the company’s outstanding shares. Clarke officials said the purchase was made for investment purposes and the firm may acquire additional shares. A company description included in the announcement said Clarke invests in “undervalued businesses and participates actively where necessary to enhance performance and increase returns.” The statement also said Clarke delivered a 33 percent return on shareholder’s investments in 2006, including dividends.

In mid-February, Shermag, Canada’s largest publicly traded furniture manufacturer, announced a loss of $7.7 million in its third quarter as revenues fell 17.3 percent. It said it would idle 283 workers by closing two factories in Quebec and shifting production to Asia.