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Berkshire Hathaway to purchase Russell Corporation

18 Apr '06

2 min read

Apparel manufacturer Russell Corporation and Berkshire Hathaway Inc announced that they have executed a definitive Merger Agreement for Berkshire Hathaway to acquire Russell Corporation, a leading branded athletic and sporting goods company.

Under the terms of the Merger Agreement, Russell Corporation stockholders will receive $18.00 per share in cash in the merger. The acquisition, which is subject to stockholder and regulatory approvals, is expected to close in the third quarter of 2006.

Jack Ward, Russell's chairman and chief executive officer, said the Merger Agreement places Russell 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. Company also owe gratitude to the thousands of people who have played roles in the development of this organization from a small Alabama apparel operation founded in 1902 to a major player in the global sporting goods marketplace of today.

Berkshire Hathaway and its subsidiaries engage in a number of diverse business activities among which the most important is the property and casualty insurance business conducted on both a direct and reinsurance basis.

Russell Corporation is a leading branded athletic and sporting goods company marketing athletic apparel, uniforms, footwear and equipment for a widevariety of sports, outdoor and fitness activities. The Company's major brands include Russell Athletic, JERZEES, Spalding, Brooks, Huffy Sports, Bike, Moving Comfort, AAI and Mossy Oak.

Russell Corporation

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