At a special stockholders meeting on August 1, shareholders of Russell Corp. approved of the acquisition that will see Russell become a subsidiary of Fruit of the Loom, Inc., itself a subsidiary of Berkshire Hathaway Inc.
In connection with the closing, Russell intends to notify the New York Stock Exchange that each share of Russell common stock has been converted into the right to receive $18.00 in cash, without interest, and will request that the New York Stock Exchange file with the Securities and Exchange Commission an application to strike Russell Common Stock from listing and registration on the NYSE. In addition, Russell will file with the Securities and Exchange Commission a request that Russell Common Stock be deregistered and that Russell’s reporting obligations under Sections 13 and 15(d) of the Securities Exchange Act be suspended.
The $18.00 per share selling price represents a selling price that is 12 times the 3-year average for Russell earnings per share and a 6.4 multiple of Russells 3-year average EBITDA.
