Samsonite to buy luxury bag maker Tumi in $1.8 billion deal

samsonite tumi takeover

Samsonite is looking to check in some extra luggage.

The well known travel bag maker said Friday it has agreed to buy its upscale American rival Tumi (TUMI) in a deal worth around $1.8 billion.

Founded in the 1970s by a former Peace Corps volunteer who worked in South America, Tumi has become one of the leading high-end brands for travelers. Its check-in and carry-on bags retail for as much as $2,495, according to its website.

The company also sells clothes and accessories like umbrellas and phone chargers.

For Samsonite (SMSEY), the world’s biggest travel luggage company, the deal gives it a bigger slice of the top tier of the market. Tumi, meanwhile, will get the benefits of being part of a larger operation with a wider global reach.

Related: Airlines could shrink carry-on bag size

“We will expand Tumi’s presence in Asia and Europe, while strengthening its business in North America,” Samsonite CEO Ramesh Tainwala said in a statement.

Tumi shares had soared 30% to $26.20 in New York on Thursday amid reports of the deal. Samsonite said it will pay $26.75 per share under the agreement.

It’s the latest in a string of acquisitions in recent years for Samsonite, including the High Sierra, Hartmann, Lipault and Speck brands.

The company’s sales rose 15% to $2.35 billion in 2014 from the year before. It has said it aims to double the size of its business in the coming years.

comments powered by Disqus