Samsonite To Buy Tumi For Equity Value Of $1.8 Bln

(RTTNews) - Samsonite International S.A. Said that it agreed to acquire Tumi Holdings, Inc. (TUMI) for US$26.75 per share in an all cash transaction, valuing Tumi at an equity value of US$1.8 billion.

TUMI closed Thursday trading at $26.20, up $6.07 or 30.15%. However, in the after-hours, the stock is down $0.09 or 0.34%.

The purchase price represented a premium of about 38% to Tumi's volume weighted average price of US$19.34 for the five days up to and including March 2, 2016, the last trading day prior to market rumors.

Samsonite intends to fund the transaction through committed bank financing. In connection with the transaction, Morgan Stanley, HSBC, SunTrust and MUFJ have arranged the committed financing.

The transaction has been unanimously approved by the Boards of Directors of both companies and is expected to close in the second half of 2016, subject to the receipt of approvals by Samsonite and Tumi shareholders, the receipt of required regulatory approvals and the satisfaction of other customary closing conditions.

For the year ended December 31, 2015, Tumi's net sales were US$548 million, representing a year on year increase of 4%. Founded in 1975, Tumi is a leading global premium lifestyle brand offering a comprehensive line of business bags, travel luggage and accessories.