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Luggage specialist Samsonite yesterday announced that it is to acquire rival Tumi for a cash consideration of US$26.75 per share.
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The agreement values Tumi at approximately US$1,824,125,868. This represents a 13.6 times multiple of enterprise value to Tumi’s adjusted EBITDA for the last 12 months ended 31 December, 2015.
The acquisition will be effected through a merger of Samsonite subsidiary PTL Acquisition with and into Tumi, with the latter becoming an indirect, wholly-owned subsidiary of Samsonite.
Tumi is a leading global premium lifestyle brand, offering a wide portfolio of business bags, travel luggage and accessories. It is sold across approximately 2,000 points of distribution in over 75 countries – with a particularly strong presence in travel retail.
Samsonite also places a major focus on travel retail. In February 2015 it acquired leading UK airport luggage and travel products retailer Rolling Luggage for £15.75 million.
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Tumi’s Alpha Bravo line offers casual bags for the consumer who “lives life on the move”. Now the company itself is on the move, the subject of a US$1.8 billion acquisition. |
The Tumi deal is subject to certain conditions including shareholder approval from both companies. It is expected to close in the second half of 2016.
Samsonite said there was “compelling strategic and financial rationale” for the merger. It said the agreement would:
– Create a leading global travel lifestyle company;
– Be an ideal and complementary fit with the Group;
– Enable the Group to strategically expand into the highly attractive premium segment of the global business bags, travel luggage and accessories market;
– Present tremendous opportunities to leverage the Group’s extensive global retail and wholesale network and its strengths in distribution, sourcing, technical innovation and localisation of products to consumer preferences to introduce the Tumi brand to millions of new customers in additional markets worldwide;
– Reinforce the Group’s strong platform for long-term growth and profitability;
– Create potential for significant operational and top-line synergies.
