Posted: December 15, 2004

Business of Sport: Russell Corp. To Purchase Brooks

From David Monti

(c) 2004 Race Results Weekly, all rights reserved RaceResultsWeekly.com

Russell Corporation announced yesterday that it had signed an agreement to purchase Brooks Sports, Inc., makers of Brooks running shoes and apparel, for $115 million in cash.

"This is a continuation of our strategy to expand our position as a leading, authentic sporting goods company," said Jack Ward, chairman and CEO of Russell via a press release. "The addition of athletic performance footwear strengthens Russell’s position in the sporting goods business. We believe that this acquisition, just as our other recent acquisitions, is an investment in our future growth."

Brooks' sales were expected to be $95 million to 2004, according to Russell, which produces sporting goods under the brand names Russell Athletic, Bike, Moving Comfort, Huffy Sports, AAI and Spalding.

"We are very pleased that Russell Corporation will be Brooks’ new owner," said Jim Weber, president and CEO of Brooks. "Russell understands the athletic industry and the specialty store environment, and they believe passionately in the Brooks brand, strategic vision, and plans for growth."

Russell Corporation is a public company traded on the New York Stock Exchange (ticker RML). It opened at $18.500 per share this morning, down five cents.