The two leading luggage brands in the incentive market are about to become one. On March 3, Samsonite International S.A., the world's largest maker of name-brand luggage, and Tumi Holdings Inc. announced that Samsonite would buy its rival for $1.8 billion in cash.
The agreement, which has been approved by both companies' boards, is expected to close in the second half of the year.
"Tumi is a perfect strategic fit for our business," said Ramesh Tainwala, CEO of Samsonite, in a statement. "The brand is beloved by millions of loyal customers for its high quality and durable premium business and luggage products."
The combination will also provide Samsonite with a key piece of the market it has long been lacking in the incentive arena: a high-end, business-luxury brand. While Samsonite purchased the smaller Hartmann brand, known for its historic leather-and-plaid luggage, for $35 million in 2012 to add the increasingly popular luxury tier to its product line, the 137-year-old brand had fallen on hard times and Samsonite had to work on restoring the product line's quality and brand.
This is a space that Tumi has long been dominant in, with business cases and luggage ranging in price from $200 for totes up to $1,800 for the largest four-wheel checked luggage in its ruggedly iconic black ballistic nylon. Tumi has added colorful designs to its line-up in recent years, as well as a large and growing line of premium business accessories and travel electronics.
Samsonite intends to expand Tumi's brand more aggressively into the European and Asia markets, while strengthening its position in the U.S., Tainwala added.
"The team at Samsonite has a long and successful track record when it comes to acquisitions and we know they will be excellent stewards of the Tumi brand," said Tumi CEO Jerome Griffith. "Samsonite will bring Tumi to new and growing markets, while still maintaining the high quality Tumi is known for."
Both brands have a strong and longstanding commitment to the incentive and special markets space and the industry organizations that serve it.