HONG KONG: Samsonite International SA said on Friday it would buy Tumi Holdings Inc for $26.75 per share in an all-cash transaction valuing Tumi at $1.8 billion, as the world’s biggest luggage group expands into the premium segment.
“It will meaningfully expand our presence in the highly attractive premium segment of the global business bags, travel luggage and accessories market,” Samsonite Chief Executive Officer Ramesh Tainwala said in a statement.
Denver-found Samsonite said it would fund the deal through bank financing and the transaction was expected to close in the second half of 2016 subject to regulatory and shareholder approvals.
With about 2,000 points of distribution across 75 countries, Tumi’s net sales increased 4 percent year-on-year in 2015 to $548 million, of which North America accounted for 68 percent.
The deal price represents a 38 percent premium to New Jersey-based Tumi’s volume weighted average price of $19.34 for the five days up to and including March 2, the statement said.
Morgan Stanley Asia Ltd acted as financial advisor to Samsonite, and Goldman Sachs & Co. acted as financial advisor to Tumi.
Trading in Samsonite shares, which was suspended on Thursday afternoon, will resume on Friday.