Luggage giant Samsonite is to pay US$1.8 billion for US-based Tumi, the luggage and travel accessories brand.
In a joint statement, the two companies said they have entered into a definitive agreement whereby Samsonite will acquire Tumi for US$26.75 per share in an all cash transaction.
“This is a transformational acquisition for Samsonite. It will meaningfully expand our presence in the highly attractive premium segment of the global business bags, travel luggage and accessories market,” said Ramesh Tainwala, Samsonite CEO.
“Tumi is a perfect strategic fit for our business. The brand is beloved by millions of loyal customers for its high quality and durable premium business and luggage products. We are excited about the tremendous opportunities this combination provides us to further diversify our product and customer portfolios.
“In particular, we will expand Tumi’s presence in Asia and Europe, while strengthening its business in North America, by leveraging our expertise in global distribution, sourcing, product design and technical innovation, especially in the area of lightweight hardside luggage.”
Tumi CEO Jerome Griffith described the announcement as “an exciting day for Tumi and all the travellers around the world who count on us”.
“The team at Samsonite has a long and successful track record when it comes to acquisitions and we know they will be excellent stewards of the Tumi brand. Samsonite will bring Tumi to new and growing markets, while still maintaining the high quality Tumi is known for.
“This is a compelling transaction that delivers substantial and immediate cash value to our shareholders. Further, we are excited for our employees to benefit from opportunities presented by being part of a larger and more diversified global company. Samsonite has successfully grown many unique brands and we look forward to the next chapter in Tumi’s great history as part of the Samsonite family.”
The two companies believe Tumi is an “ideal and complementary fit” with Samsonite.
“With approximately 2000 points of distribution across 75 countries, Tumi’s leading market position in the premium business and luggage segment is a perfect complement to Samsonite’s strong and diverse portfolio of brands and products, with limited overlap in market positioning, price point and distribution. The addition of Tumi builds on Samsonite’s proven track record of successful acquisitions across multiple product categories and price points to broaden its portfolio,” the companies’ statement said.
“It enables Samsonite to strategically expand into the highly attractive premium segment of the global business bags, travel luggage and accessories market with a business and travel brand that is recognised worldwide as being “best-in-class” in the premium segment.”
Tumi was founded in 1975. Its products range from iconic ‘black ballistic business cases’ and travel luggage targeting business travellers, to travel accessories, women’s bags and outdoor apparel.
In the year to December 31, Tumi’s net sales were US$548 million, representing a year on year increase of 4 per cent.
Post takeover, Samsonite will continue to be listed on the Hong Kong Stock Exchange.
