Samsonite International S.A. (01910.HK) has acquired US-based smartphone and tablet case maker Speculative Product Design LLC. (Speck Products) for US$85 million, marking the luggage producer’s first step out of its comfort zone, the Hong Kong Economic Journal reported Friday.
The deal also marked Samsonite’s second acquisition in less than two months. The company bought French counterpart Lipault for 20 million euro (US$27.2 million) in April.
Speck Products posted a 17.2 percent drop in revenue to US$104 million last year, turning the bottom line into red with a US$18.4 million loss.
Samsonite’s Hong Kong investor relations director William Yue said the company will restructure the systems and logistics of Speck Products, with a view to lowering costs and turning it back to profit.
The items of Speck Products will continue to be sold in existing channels in certain large household appliances and computer shops, rather than Samsonite’s stores, Yue said. The product prices are generally said to range from US$29.99 to US$49.99.
Yue added that the market for smartphone and tablet cases is expected to see double-digit growth and that the prospects remain positive for the long term.
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