April 7, 2017
HONG KONG — Samsonite International S.A. (“Samsonite”; SEHK stockcode: 1910), the world’s largest travel luggage company, today announced that it has entered into an agreement to acquire eBags, Inc. (“eBags”), one of the world’s leading online retailers of bags and related accessories for travel, for a cash consideration of US$105.0 million (subject to certain customary adjustments for working capital, transaction expenses and net debt). The acquisition is part of Samsonite’s ongoing strategy to accelerate the growth of its direct-to-consumer, ecommerce business, and strengthen its existing digital capabilities.
“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.”
Mike Edwards, President and Chief Executive Officer of eBags, said, “This is an exciting day for eBags and we are thrilled to be joining the Samsonite family. 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 offering.”
Founded in 1998, 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 of the brands owned by the Group), as well as products under the eBags brand.
eBags recorded net sales of US$158.5 million for the fiscal year ended December 25, 2016, an increase of 23.5% from the US$128.3 million in net sales recorded during the fiscal year ended December 27, 2015.
The acquisition is currently expected to be completed in the second quarter of 2017, subject to the satisfaction of certain customary closing conditions.