Samsonite To Acquire Luxury Brand Tumi
As first reported Friday in a PPB Newslink breaking news alert, Samsonite International S.A. and Tumi Holdings, Inc. have entered into a definitive agreement for Samsonite (UPIC: suitcase) to acquire Tumi (UPIC: tumi) in an all-cash transaction with an equity value of $1.8 billion.
The acquisition enables Samsonite to strategically expand into the premium segment of the global business bags market with a luxury brand that is recognized as best-in-class, and creates the potential for significant operational and top-line synergies, and cost savings in sourcing, logistics, sales, marketing and distribution, among other strategic advantages.
“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,” says 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 adds, “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. 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 transaction has been unanimously approved by the boards of directors of both companies and is expected to close in the second half of 2016 pending approvals by shareholders, the receipt of regulatory approvals and other customary closing conditions.
Samsonite intends to fund the transaction through committed bank financing arranged with Morgan Stanley, HSBC, SunTrust and MUFJ. The combined company will continue to be listed on the Main Board of the Stock Exchange of Hong Kong Limited.