Samsonite International S.A. has entered into a definitive agreement with Tumi Holdings, Inc. to acquire the luggage giant for $26.75 per share in an all cash transaction, valuing Tumi at an equity value of $1.8 billion.
Samsonite intends to fund the transaction through committed bank financing. In connection with the transaction, Morgan Stanley, HSBC, SunTrust and MUFG have arranged the committed financing. The deal is expected to close in the second half of 2016, subject to the receipt of approvals by Samsonite and Tumi shareholders, the receipt of required regulatory approvals and the satisfaction of other customary closing conditions.
In addition to manufacturing under the name Samsonite, the company’s other brands include American Tourister, Hartmann, High Sierra, Gregory, Speck, and Lipault.
“This is a transformational acquisition for Samsonite,” said Ramesh Tainwala, CEO of Samsonite. “It will meaningfully expand our presence in the highly attractive premium segment of the global business bags, travel luggage and accessories market. 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’s CEO Jerome Griffith said, “This is an exciting day for Tumi and all the travelers 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.”
The combined company will continue to be listed on the Main Board of The Stock Exchange of Hong Kong Limited.