Berkshire Hathaway, the investment vehicle of US billionaire Mr Warren Buffet, has agreed to buy troubled clothing maker Fruit of the Loom for $835 million in cash.
The company which once employed more than 1,000 people in Donegal and Derry, has been operating under Chapter 11 bankruptcy protection since 1999.
The deal gives Omaha-based Berkshire the assets and working capital of Fruit of the Loom, which filed for bankruptcy protection in December, 1999. Fruit of the Loom's creditors would split proceeds from the deal, according to sources familiar with the deal.
The Fruit of the Loom deal marks Berkshire's eleventh acquisition in two years, continuing Mr Buffett's policy of picking up medium-sized, profitable "Old Economy" companies that can generate cash to fuel his investments.
Berkshire owns more than 40 businesses in a range of sectors, but focusing on car and insurance and reinsurance, which supply a large "float" of capital for Mr Buffett to invest in stocks and bonds.
In the past two years, Berkshire has spent several billion dollars buying companies in areas as diverse as carpets, boots, and paint to building products and insurance.
Berkshire's last deal was buying transport and equipment leasing firm XTRA, for about $590 million.