Atlanta-based athletic and sporting goods company Russell Corp. and Omaha, Neb.-based investor
Warren E. Buffett’s Berkshire Hathaway Inc. have signed an agreement whereby Berkshire Hathaway
will acquire the outstanding shares of Russell for $18 per share, or approximately $597.3 million.
Subject to stockholder and regulatory approvals, the transaction is expected to close in the third
quarter of 2006.
According to Jack Ward, chairman and CEO, Russell, the deal will strengthen the company’s
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 said. “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.”
Russell would become the third company with ties to the US textile industry among Berkshire
Hathaway’s portfolio of more than 40 companies representing a wide range of markets. Bowling Green,
Ky.-based underwear, T-shirt and activewear maker Fruit of the Loom Inc. and Dalton, Ga.-based
floor covering manufacturer Shaw Industries Inc. also are part of the conglomerate.
April 18, 2006
