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BREAKING NEWS

Samsonite has Tumi in the bag

Samsonite - the world's biggest bag maker - is to pay 1.6 billion euros for Tumi to expand in the luxury luggage market.

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Samsonite has Tumi in the bag

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Samsonite is buying Tumi. The world’s biggest bag maker will pay 1.6 billion euros to expand in the luxury luggage market.

Luxembourg-based Samsonite plans to increase US firm Tumi’s presence in Asia and Europe and strengthen its North America business.

The company has been on an acquisition spree partly to offset slowing growth in China, which accounts for about 10 percent of the Samsonite group’s worldwide sales.

Investors liked the prospective savings through synergies from the all-cash deal which is to be financed with bank loans.

“It is a perfect match in many aspects such as retail channels and regional mix, category mix and even price points,” said Boyoung Kim, an analyst at BNP Paribas.

“It can bring huge synergies in the long term,” she added.

Samsonite’s shares rose 1.05 percent on Friday in Hong Kong where they are traded.