Samsonite International SA (HKSE: 1910), the world’s largest travel luggage company, said it agreed to acquire Colorado-based eBags Inc., one of the world’s leading online retailers of bags and travel accessories, for $105 million in cash.
eBags was founded in 1998 by Jon Nordmark, Peter Cobb, Frank Steed, Andy Youngs, and Eliot Cobb, of which the first four had previously worked at Samsonite. Earlier venture capital investors included Saints Capital, Amerindo Investment Advisors, Benchmark, Mitsubishi UFJ Capital and TCV.
eBags offers consumers a diverse offering of travel bags and accessories including luggage, backpacks, handbags, business bags, travel accessories and apparel. eBags sells products from a wide variety of leading travel and fashion brands, including many Samsonite brands, as well as products under the eBags brand. eBags recorded net sales of $158.51 million in 2016, an annual increase of 23.5%.
As reported by ExitHub last year, Samsonite acquired Tumi (NYSE: TUMI) in a deal valued at $1.8 billion.
“As the No. 1 online luggage and bag specialist in the U.S., eBags is an excellent complement to Samsonite’s existing business,” said Ramesh Tainwala, Chief Executive Officer of Samsonite. “The acquisition provides us with a strong platform to significantly expand our direct-to-consumer online presence, not just in North America but around the world. With eBags’ immediate resources and digital expertise, we are able to expand our online retail capabilities in a meaningful way, driving stronger sales growth across all the brands in Samsonite’s portfolio. E-commerce is fast becoming a vital part of our business, and will continue to be central in our strategy moving forward.”
“This is an exciting day for eBags and we are thrilled to be joining the Samsonite family,” said Mike Edwards, President and Chief Executive Officer of eBags. “Their considerable experience and well-established presence in the travel luggage industry, together with our digital capabilities and passion for travel, are a perfect match. We look forward to forging a strong partnership, and to ensuring that our customers are given the best service and a diverse and compelling product
Samsonite is the world’s best known and largest lifestyle bag and travel luggage company, with a heritage dating back more than 100 years. The group is engaged in the design, manufacture, sourcing and distribution of luggage, business and computer bags, outdoor and casual bags, travel accessories and slim protective cases for personal electronic devices throughout the world, primarily under the Samsonite, Tumi, American Tourister, Hartmann, High Sierra, Gregory, Speck, Lipault and Kamiliant brand names and other owned and licensed brand names. Samsonite was founded in 1910 and is headquartered in Luxembourg.
The deal is expected to close in the second quarter of 2017, subject to customary closing conditions.