Russell Acquired
It looks like Warren Buffett will be getting comfortable. The investor holds a 40 percent stake in Omaha, Neb.–based Berkshire Hathaway, which announced plans to acquire Russell Corp., an Atlanta-based athletic apparel and equipment maker, for $598 million. The 104-year-old company produces apparel under several labels, including Russell Athletic, Jerzees and Spalding. The agreement, which is scheduled to close by the third quarter, calls for Russell shareholders to receive $18 per share in cash. The deal is expected to help Russell compete in a global market. When the transaction is complete, “Russell will be better positioned against our worldwide competitors in all three segments of our business––apparel, sports equipment and athletic shoes,” said Jack Ward, Russell’s chairman and chief executive officer.
