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Russell Announces Plans to Acquire Brooks Sports, Inc.

Article Excerpt
Issues 2005 Sales and Earnings Guidance

Russell Corporation announced today it has signed an agreement to acquire Brooks Sports, Inc. for approximately $115 million. Brooks' sales for 2004 are expected to be approximately $95 million and the acquisition is expected to be accretive to Russell's 2005 earnings. The all-cash transaction will be funded with proceeds from Russell's existing credit facility.

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Brooks is a leading global provider of performance athletic footwear, apparel and accessories to running enthusiasts worldwide. Its products are sold predominately through specialty running stores and other retail outlets specializing in high quality, performance running products. Approximately 25 percent of Brooks' revenues are generated internationally from 26 countries.

The transaction, which is subject to regulatory review and other customary conditions, is expected to be completed by early January 2005.

Expanding Position in Performance Athletic Products

"This is a continuation of our strategy to expand our position as a leading, authentic sporting goods company," said Jack Ward, chairman and CEO. "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,...

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