NEW YORK (CNNMoney.com) - Berkshire Hathaway Inc., the holding company run by billionaire investor Warren Buffett, announced plans Monday to buy athletic clothing maker Russell Corp., in a deal that could be valued at as much as $600 million.

Shares of Russell (Research), which makes sportswear under the Jerzees, Spalding and Huffy brands, skyrocketed over 35 percent in after hours trade Monday. Shares of Berkshire (Research) were unchanged after the closing bell.

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In a joint press release, the two companies said that Russell stockholders will receive $18 per share under the terms of the deal, which is expected to close in the third quarter of 2006.

"Russell will be better positioned against our worldwide competitors in all three segments of our business and that includes apparel, sports equipment and athletic shoes," Jack Ward, Russell's chairman and CEO, said in a statement.

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