Samsonite to Acquire Tumi in $1.8 Billion Deal
Posted on March 7, 2016
Samsonite has announced plans to acquire Tumi, a premium luggage and travel accessories brand. The deal is valued at $1.8 billion. Samsonite and Tumi say the merger will create a leading global travel lifestyle company.
Tumi's Raleigh Continental Expandable Carry-on is pictured above. It retails for $1,395. Tumi makes a variety of luggage and bags. They also offer phone covers, key fobs, wallets, belts, eyewear and outerwear. The company was founded in 1975. They generated $548 million in net sales in 2015.
Samsonite CEO Ramesh Tainwala says in a statement, "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."
The New York Times reports that Samsonite is to pay $26.75 a share for Tumi, which is a 32% above its previous close. A Barrons.com report says Tumi can help open doors for Samsonite in the U.S. Most of Tumi's sales are in North America but Samsonite has just 1/3 of its sales in the region.
This video shows some of the brands part of the Samsonite Group ahead of the Tumi merger. They include Samsonite, American Tourister, High Sierra, Lipault Paris, Gregory and Hartmann.