Samsonite International SA (01910.HK) said it has agreed to buy luxury luggage maker Tumi Holdings Inc. for about US$1.8 billion, the Wall Street Journal reports.
The newspaper reported late on Wednesday that a deal was in the works.
Samsonite will pay US$26.75 a share, a 33 percent premium to Wednesday’s closing price of US$20.13. The shares rose 30 percent to US$26.20 on Thursday.
Tumi, based in South Plainfield, New Jersey, was established in 1975 and listed in 2012.
It has more than 100 of its own stores and its products are also sold at high-end department stores and other retailers, the newspaper said.
Last year the company reported a 3.9 percent growth in sales at US$547.7 million.
Samsonite’s acquisitions in recent years have included Chic Accent, Hartmann, High Sierra and Lipault. Its sales reached US$2.4 billion in 2014.
The deal will help Samsonite expand in the “highly attractive premium segment of the global business bags, travel luggage and accessories market”, and is expected to provide cost-savings in areas like sourcing, logistics and marketing, the Journal said.
The transaction is expected to close in the second half of the year.
– Contact us at [email protected]