Samsonite International S.A. said on Friday it would buy Tumi Holdings Inc for USD26.75 per share in an all-cash transaction valuing Tumi at USD1.8 billion, as the world’s biggest luggage group expands in the luxury market.
Hong Kong-listed Samsonite said it would finance the deal with bank loans and that the transaction was expected to close in the second half of the year subject to regulatory and shareholder approvals.
Investors applauded the deal, sending Samsonite shares up to as much as HKD25.2, their highest since October. The stock trimmed gains but was up 2.3 percent by midday, outpacing a 0.6 percent gain in the benchmark Hang Seng Index .HSI.
The deal price represents a 38 percent premium to New Jersey-based Tumi’s volume weighted average price of USD19.34 for the five days up to and including March 2, the statement said.