The world largest luggage producer, Samsonite International S.A. (HKG: 1910), is nearly close a deal to buyout Tumi Holdings Inc. (NYSE: TUMI). Shares of Tumi jumped up 27.97% to $25.76 on Thursday morning trading.
The company has not disclose details of the buyout deal yet, but taking into account the general premium rule, along with Tumi’s $1.4 billion market capitalization, it may be valued approximately $2 billion. The agreement of the deal could be announced as soon as this week.
Tumi offers a line of travel and business products and accessories in multiple categories. The Company operates in four segments including: Direct-to-Consumer North America, Indirect-to-Consumer North America, Direct-to-Consumer International and Indirect-to-Consumer International. Tumi designs its products for and markets its products to professionals, travelers and individuals.
Samsonite is a travel luggage company engaged in the design, manufacture, sourcing, marketing and sale of travel, business and casual luggage, as well as travel accessories. Its operation consists of manufacture and distribution of luggage, business and computer cases, and outdoor bags. It sells its products under the brand names Samsonite and American Tourister.
Last year, both companies witnessed a drop in their stock prices and product sales, due to the strong dollar. Another major reason that can be attributed to the negative impact was the Chinese economic slowdown.
Samsonite has been growing over the past few years through acquisitions of brands, such as Lipault and American Tourister. In 2014, it had sales worth $2.4 billion, which reflected a 17% year-over-year increment.