HONG KONG, March 4 — Luggage giant Samsonite said today it would buy US luxury bag maker Tumi in a deal worth US$1.8 billion (RM7.4 billion).
In a statement to the Hong Kong exchange, where it listed five years ago, Samsonite said it would pay US$26.75 a share for the firm—a third more than its value on Wednesday before the likely buyout was sounded.
Samsonite, which saw its shares bounce nearly 5 per cent to HK$24.85 (RM13.24) in morning trade following the announcement, said Tumi was a “perfect strategic fit” for its business.
“This is a transformational acquisition for Samsonite. It will meaningfully expand our presence in the highly attractive premium segment of the global business bags,” Samsonite chief executive officer Ramesh Tainwala said in a separate statement.
Luxury bag maker Tumi, which saw net sales up 4 per cent at 547.7 million in 2015, has 177 standalone stores worldwide and plans to open up to 20 more this year, Bloomberg News reported.
“Samsonite will bring Tumi to new and growing markets, while still maintaining the high quality Tumi is known for,” its chief executive officer Jerome Griffith said in the statement.
Samsonite raised more than US$225 million in an initial public offering in Hong Kong in June 2011.
By listing in Hong Kong, the US-based luggage maker joined a slew of Western brands seeking to use the southern Chinese city to boost their presence in fast-growing Asian markets. —AFP
