Samsonite to buy premium travel luggage maker Tumi Holdings for $1.8 bn
04 March 2016
Samsonite International SA today struck a deal to buy Tumi Holdings Inc for $1.8 billion in cash, in a bid to expand into the premium travel luggage and accessories segment.
Under the terms of the deal, Samsonite has offered to pay $26.75 per share, a 38 per cent premium to Tumi's volume weighted average price of $19.34 for the five days up to and including 2 March.
Samsonite, the world's biggest luggage maker, will fund the deal through bank financing and the transaction is expected to close in the second half of 2016 subject to regulatory and shareholder approvals.
"It will meaningfully expand our presence in the highly attractive premium segment of the global business bags, travel luggage and accessories market," said, Samsonite CEO, Ramesh Tainwala in a statement.
Founded in 1975 by Charlie Clifford, New Jersey-based Tumi is a manufacturer of luxury suitcases and bags for travel and also supplies accessories such as belts, pens, and electronic equipment.
The company also had a licensing agreement with Italian motorcycle manufacturer Ducati, for a collection of eight co-branded pieces.
The brand is sold in approximately 2,000 points of distribution from New York to Paris to London and Tokyo, as well as in the world's top department, specialty and travel retail stores in over 75 countries.
Tumi's net sales were $548 million in the year ended 31 December 2015, with 68 per cent of its sales generated from North America, 17 per cent from Asia Pacific, 14 per cent from Europe, Middle East and Africa and 1 per cent from Latin America.
Founded by Jesse Shwayder in 1910 in Denver, Colorado, as a trunk manufacturing company, Hong Kong Stock Exchange-listed Samsonite is the world's largest travel luggage company.
Samsonite moved its headquarters from Denver to Mansfield, Massachusetts in 2007 after CVC Capital Partners acquired the company for $1.7 billion.
Its brands include Samsonite, American Tourister, High Sierra, Hartmann, Lipault, and Speck. Its products were sold at more than 46,000 points of sale in over 100 countries through wholesale and retail distribution channels.
Nearly forty per cent of all Samsonite hard luggages are manufactured at its plant in Nashik in India.