Samsonite bags luxury luggage rival Tumi
The world's biggest luggage maker, Samsonite, has reached a takeover agreement with luxury rival Tumi in a $1.8bn (£1.3bn) deal.
Samsonite said it would pay $26.74 per share in an all-cash transaction in a move designed to give it access to the premium end of the luggage market.
The deal is expected to bring cost savings in sourcing, logistics, sales and marketing, as well as distribution and product development.
The new company will list in Hong Kong.
Luxembourg-based Samsonite is already listed in Hong Kong, while US firm Tumi is currently traded in New York.
"It will meaningfully expand our presence in the highly attractive premium segment of the global business bags, travel luggage and accessories market," Samsonite chief executive Ramesh Tainwala said in a statement.
Samsonite's global net sales for the first six months of 2015 were $1,2bn.
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. North America accounted for 68% of those sales.
Pending regulatory and shareholder approvals, the deal is expected to be closed in the second half of 2016.