Updated from 1:07 p.m. EDT
, the holding company controlled by the billionaire financier Warren Buffett, said Tuesday that it had agreed to buy
, which makes building materials and footwear in addition to publishing books, for about $600 million in cash.
Under the terms of the agreement, Berkshire Hathaway, which is based in Omaha, will pay $22 a share for Justin, a premium of 23% to Justin's closing price Monday of 17 7/8. Shares of Justin closed at 21 7/8, up 4 1/16 or 23%, Tuesday.
The company will become a wholly owned subsidiary of Berkshire Hathaway and will continue to be headquartered in Fort Worth, Tex.
Buffett pledged to manage Justin with a hands-off approach. "Berkshire has over 60,000 employees, but only 13 people work in our 4,000-square-foot home office," he said in a statement. "We not only encourage extraordinary autonomy in our operating businesses, we depend on it."
Berkshire Hathaway's class A shares closed at 57100, up 200 or 0.35% Tuesday, while the company's class B shares closed at 1853, up 5 or 0.27%. The class B stock, established in 1999, is worth 1/30th of the class A stock.