Samsonite, the worlds ‘s largest luggage maker, is to acquire luxury rival Tumi as part of a £1.3bn takeover deal.
Samsonite said it would pay £18.9 per share in an all-cash transaction, as it taps into the luxury market.
The deal is expected to bring cost savings in sourcing, logistics, sales and marketing, as well as distribution and product development.
“It is a perfect match in many aspects such as retail channels and regional mix, category mix and even price points,” Boyoung Kim, an analyst at BNP Paribas, told Reuters. “It can bring huge synergies in the long term.”
The new company will list on the Hong Kong stock exchange, where Luxembourg-based Samsonite is already listed.
“It will meaningfully expand our presence in the highly attractive premium segment of the global business bags, travel luggage and accessories market,” said Samsonite Chief Exec Ramesh Tainwala in a statement.
Premium rival Tumi has around 2,000 distribution points across 75 countries.
Pending regulatory and shareholder approvals, the deal is expected to be closed in the second half of 2016.