 "Travel luggage maker Samsonite to buy Tumi for $ 1.8 bn")
The Hong Kong-based bag & travel luggage company Samsonite International SA will acquire Tumi Holdings Inc, the manufacturer of premium business, travel and lifestyle products and accessories, for $ 26.75 per share in an all cash transaction, valuing Tumi at an equity value of $ 1.8 billion. The deal will enable 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.
“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. 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,” said Ramesh Tainwala, chief executive officer of Samsonite.
The combination brings together Tumi, an iconic North American purveyor of premium business bags, travel luggage and accessories, with Samsonite, the world’s best known and largest lifestyle bag and travel luggage company, to create a leading global travel lifestyle company.
With approximately 2,000 points of distribution across 75 countries, Tumi’s leading market position in the premium business and luggage segment will complement Samsonite’s strong and diverse portfolio of brands and products, with limited overlap in market positioning, price point and distribution.
The deal presents opportunities to leverage Samsonite’s extensive global retail and wholesale network and its strengths in distribution, sourcing, technical innovation and localisation of products to introduce the Tumi brand to new customers in additional markets worldwide. This includes expansion of Tumi in Asia and Europe, strengthening its platform in North America, and leveraging Samsonite’s clear strength in hardside innovation to expand Tumi’s hardside luggage offering.
For the year ended December 31, 2015, Tumi’s net sales were $ 548 million, representing a year on year increase of 4 percent. North America accounted for 68 percent of Tumi’s 2015 net sales, with Asia Pacific accounting for 17 percent, Europe, Middle East and Africa accounting for 14 percent and Latin America accounting for the remaining 1 percent.
“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. 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,” said Ramesh Tainwala, chief executive officer of Samsonite.
The combination brings together Tumi, an iconic North American purveyor of premium business bags, travel luggage and accessories, with Samsonite, the world’s best known and largest lifestyle bag and travel luggage company, to create a leading global travel lifestyle company.
With approximately 2,000 points of distribution across 75 countries, Tumi’s leading market position in the premium business and luggage segment will complement Samsonite’s strong and diverse portfolio of brands and products, with limited overlap in market positioning, price point and distribution.
The deal presents opportunities to leverage Samsonite’s extensive global retail and wholesale network and its strengths in distribution, sourcing, technical innovation and localisation of products to introduce the Tumi brand to new customers in additional markets worldwide. This includes expansion of Tumi in Asia and Europe, strengthening its platform in North America, and leveraging Samsonite’s clear strength in hardside innovation to expand Tumi’s hardside luggage offering.
For the year ended December 31, 2015, Tumi’s net sales were $ 548 million, representing a year on year increase of 4 percent. North America accounted for 68 percent of Tumi’s 2015 net sales, with Asia Pacific accounting for 17 percent, Europe, Middle East and Africa accounting for 14 percent and Latin America accounting for the remaining 1 percent.