Samsonite to buy USA luxury baggage maker Tumi for $1.8B

On Friday, Tainwala said that Samsonite wouldn't rule out more acquisitions but that the company is now focused on integrating Tumi.

"Samsonite will bring Tumi to new and growing markets, while still maintaining the high quality Tumi is known for", its chief executive officer Jerome Griffith said in the statement.

For Samsonite, the world's biggest travel luggage company, the deal gives it a bigger slice of the top tier of the market.

Premium rival Tumi has about 2,000 distribution points across 75 countries, and the firm saw net sales increased by 4% year-on-year in 2015 to $548m.

Almost forty percent of all Samsonite hard luggages are manufactured at its plant in Nashik in India.

That expertise, he said, could trickle through the company, influencing the design for Samsonite and American Tourister products.

Tumi, however, remains focused on North America, with 68% of its sales derived there, though it has sought to expand internationally. In 2014, it had sales worth $2.4 billion, which reflected a 17% year-over-year increment.

Founded by Jesse Shwayder in 1910 in Denver, Colorado, as a trunk manufacturing company, Hong Kong Stock Exchange-listed Samsonite is the world's largest travel luggage company.

A deal could be announced as soon as this week, but the report did not mention the financial terms of the deal.

Samsonite's acquisitions in recent years have included Chic Accent, Hartmann, High Sierra and Lipault.

Denver-found Samsonite said it would fund the deal through bank financing and the transaction was expected to close in the second half of 2016 subject to regulatory and shareholder approvals.

Amazon Releases the Echo Dot
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