The world's largest luggage company just got a lot bigger.
Samsonite has zipped up a deal to acquire luxury rival Tumi for around $1.8 billion, in what will be the largest acquisition for Samsonite since its initial public offer in 2011. The deal is expected to close in the second half of 2016 subject to shareholder approval.
"This is a transformational acquisition for Samsonite. It will meaningfully expand our presence in the highly attractive premium segment of the global business bags, travel luggage and accessories market" Samsonite's Chief Executive Ramesh Tainwala said in a statement.
Samsonite will pay US$26.75 per share in an all-cash transaction, which represents a 33% premium to Tumi's closing price on Wednesday.