Samsonite Corp. (London), the world’s largest luggage company, will be acquired by the private equity firm CVC Capital Partners Ltd. (London) in an all-cash deal of about $1.7 billion.
Its principal shareholders — entities controlled by Ares Management LLC (Los Angeles), Bain Capital Partners LLC (Boston) and Teachers’ Private Capital, a private investment branch of the Ontario Teachers’ Pension Plan (Toronto) — have agreed to the transaction.
“CVC Capital Partners is delighted to have reached agreement to acquire Samsonite, the world's leading travel lifestyle brand,” said CVC’s Hardy McLain and Luigi Lanari in a statement. “We look forward to [realizing] the full potential of the brand. China and India present particularly interesting opportunities for growth.”
Samsonite manufactures and distributes luggage under its name and American Tourister, licenses its name for non-luggage products (such as, recently, designer clothing) and makes travel gear for The Timberland Co. (Stratham, N.H.). It sells its products in more than 100 countries and through more than 300 company-owned stores. It did more than $1 billion in sales in its last fiscal year but lost $6.8 million.
“We believe that this transaction delivers excellent value to all our shareholders,” said Samsonite ceo Marcello Bottoli. “I am excited to continue our successful journey to create the world's leading travel lifestyle brand together with CVC Capital Partners.”
Samsonite will move its world headquarters from London to Mansfield, Mass., which has been the company's North American headquarters for the past year and a half.