June 22, 2000

Justin Industries bought by Warren Buffett

DALLAS (AP) -- Investor Warren Buffett's Berkshire Hathaway has agreed to pay $600 million in cash for Justin Industries, a maker of bricks and boots.

Berkshire Hathaway said Tuesday it would pay $22 a share, or about 23 percent above Justin's closing share price Monday.

Justin will become a wholly-owned subsidiary of Berkshire Hathaway and remain headquartered in Fort Worth, the companies said.

The company makes Justin, Tony Lama, Nocona and Chippewa footwear and owns building-materials lines Acme Brick Co., Featherlite Building Products Corp. and American Tile Supply Co.

Analysts called it a fair price.

Justin "has rising earnings, positive cash flow, a good balance sheet, fairly good management," said Greg Schneider, an analyst with The Bear Stearns Cos. Inc. "We can't argue with the price."