US: Berkshire Hathaway in bid for Russell Corp

By just-style.com | 18 April 2006

Sportswear company Russell Corporation is set to be acquired by Berkshire Hathaway, billionaire Warren Buffett's investment vehicle, in a US$1bn-plus deal.

The companies have announced an agreement for Berkshire Hathaway to pay US$18 a share to acquire Russell, with the deal expected to be finalised in the third quarter of this year, subject to shareholder and regulatory approval.

Berkshire Hathaway will pay a total of $597m for Russell, but will also assume an estimated $400m-500m in debts.

Jack Ward, Russell's chairman and CEO, said the deal would put the company in a stronger financial position. "Russell will be better positioned against our worldwide competitors in all three segments of our business and that includes apparel, sports equipment and athletic shoes," he added.

Berkshire Hathaway is a diversified investment company engaged in a number of business areas, particularly property and casualty insurance.

Russell's major brands include Russell Athletic, Jerzees, Spalding, Brooks, Huffy Sports, Bike, Moving Comfort, AAI and Mossy Oak.

Sectors: Apparel, Finance, Manufacturing

Companies: Russell, Berkshire Hathaway