Acme Brick's parent company signs merger agreement

Berkshire Hathaway Inc., the holding company of billionaire Warren Buffett, and Justin Industries, the owner of Acme Brick Company, have established a definitive merger agreement, a transaction valued at $600 million, according to a June 20 Justin Industries press release.

Meanwhile, Acme Brick announced June 22 that it has acquired closely held Wheeler Brick Company Inc., a manufacturing facility in northeast Arkansas.

The definitive merger agreement between Justin Industries and Berkshire Hathaway calls for a cash tender offer of $22 per share to holders of Justin common stock by a wholly-owned subsidiary of Berkshire Hathaway. Upon successful completion of the tender offer, the agreement calls for a merger, pursuant to which the remaining shareholders will receive cash in the same amount as paid in the tender offer.

Justin Industries will become a wholly-owned subsidiary of Berkshire Hathaway and will continue to have its headquarters in Fort Worth, Texas.

The tender offer is subject to certain conditions, including the tender of not less than 67 percent of Justin's outstanding common stock, on a fully diluted basis, and the obtaining of all necessary governmental approvals.

Meanwhile, Justin subsidiary Acme Brick Company has acquired 54-year-old Wheeler Brick Company in Jonesboro, Ark., about 75 miles from the Memphis metropolitan area. Wheeler Brick commenced operations in 1946 at the site of the old Jonesboro Brick Company and moved to its present location in 1966. Wheeler Brick was founded by Ellis R. Wheeler, who served as its president for more than 40 years

Justin Industries comprises Justin Brands Justin Boot Company, Nocona Boot Company, Tony Lama Company, and Chippewa Shoe Company and Acme Building Brands Acme Brick, Featherlite, American Tile Supply, Texas Quarries, IBP.

Featherlite is the concrete division of Acme Building Brands, and Texas Quarries produces stone blocks. IBP manufactures decorative glass blocks, used in place of windows and for showers and room dividers, according to Dave Martin, regional sales manager for Acme Brick in Springfield.