Samsonite today announced it has purchased Tumi Holdings for $1.8 billion. Under the deal, Samsonite is paying $26.75 a share in cash, 32% above the closing price of Tumi’s stock on the day of the sale. With the purchase of Tumi Holdings, Samonsite is the leading luggage maker active in the incentive, rewards and recognition sector. The purchase broadens Samsonite’s line to include high-end luggage. “We’re very excited to add Tumi to our roster of brands (High Sierra, Speck, Hartmann, American Tourister, Gregory, Lipault), and it continues our goal of providing consumers travel products that meet their changing demands and needs," says Pete Mitchell, Director of B to B Sales for Samsonite. "It’s a great fit, and we can bring them our expertise in distribution, sourcing and international presence to expand the Tumi brand globally.” While Mitchell says it's too soon to discuss precisely how the two special markets groups will work together, he notes, “I’m greatly excited to be on the same team as Mike Landry, who took my job when I left Tumi in 2003 and has my highest personal and professional respect. It’s a great addition for us."
According to a statement by Landry, Vice President of Special Markets for Tumi, “Samsonite is one of the world’s best known and largest lifestyle bag and travel luggage companies, with a heritage dating back more than 100 years. Importantly, Samsonite is a company built on many unique brands, and they have a proven track record of successfully growing these brands. One of the things that is very attractive to us about this transaction with Samsonite is that they recognize the extraordinary value proposition that Tumi represents. Samsonite has great appreciation for Tumi’s outstanding brand awareness with consumers, the strength and loyalty of our customer base and our leadership position in the highly attractive premium and business segment of the market. Samsonite is committed to our brand and is not looking to compromise or change it.”
He adds: “We are excited about the opportunity this transaction with Samsonite provides to bring our products to customers and consumers in additional markets worldwide. As part of Samsonite, we will be even better positioned to expand in Asia and Europe, while also further growing our business in North America. Together, we will have greater resources and capabilities that will enable us to be an even stronger business partner to the industry. The transaction is expected to close in the second half of 2016, during which time Tumi and Samsonite will continue to operate as independent companies. We will continue to fill all orders on time and in the normal course, as usual.”