Russell Corporation and Berkshire Hathaway Inc. have executed a definitive Merger Agreement for Berkshire Hathaway to acquire Russell Corporation.
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. We also owe our 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.”
