Samsonite International SA is buying Tumi for about $1.8 billion in cash, seeking to expand its presence in the luxury bags market.
The company said Thursday it’s paying $26.75 per share for Tumi, a 33 premium over its closing price Wednesday, before The Wall Street Journal reported the companies were in merger talks.
Tumi Holdings Inc. is based in South Plainfield, New Jersey. Its luggage, backpacks and briefcases are sold in 2,000 locations worldwide, with sales totaling $548 million last year.
Samsonite said it expects the deal to lead to cost savings in sourcing, logistics, sales and marketing, distribution and even product development.
The combined company will list on the Hong Kong Stock Exchange, where Luxembourg-based Samsonite’s stock trades.
Reported by Associated Press @AITbags