Apparel manufacturer and leading children#;s clothing producer Garan Inc is to be acquired by Berkshire Hathaway Inc for $273.1 million after the two companies agreed terms on a deal.

New York-based Garan enjoyed sales of $257.2 million in 2001 and is famous for its popular Garanimals brand which features animal-themed labels that help youngsters choose clothes.

In a statement, Garan said the deal - which is still subject to shareholder approval - will see it become a unit of Berkshire but it will remain based in New York.