Tumi Holdings Inc (NYSE:TUMI) shares were flat at $26.72 on Tuesday even as shareholders backed the company’s plans to be acquired by luggage-maker Samsonite. Tumi Holdings has a market cap of $1.81 billion at 67.65 million shares outstanding. Shares have been trading in a 52-week range of $15.01 to $27.84, which means that price is already at the resistance.
In the recent special meeting of stockholders, 96.8% of the votes cast supported the adoption of the Merger Agreement dated March 3, 2016 with Samsonite. Majority of the voters also approved, by means of a non-binding, advisory basis, specified compensation that may become payable to Tumi’s principal executive officer and principal financial officer, in addition to Tumi’s other three most highly compensated executive officers, in connection with the merger.
Upon completion of this merger, Tumi’s stockholders will be entitled to receive $26.75 in cash, without interest, for each share of Tumi’s common stock that such stockholder owns. This deal is expected to be completed by the second half of this year, pending the receipt of approval by Samsonite shareholders and regulatory approval.
This transaction is expected to amount to $1.8 billion and further Samsonite’s plans to expand to the luxury market. It represents Samsonite’s largest deal since 2011, prior to announcing nine acquisitions since 2012. Tumi Holdings Chief Executive Jerome Griffith acknowledged that Samsonite has had a long successful track record with acquisitions.
This is a transformational acquisition for Samsonite. It will meaningfully expand our presence in the highly attractive premium segment of the global business bags, travel luggage and accessories market” Samsonite CEO Ramesh Tainwala said in a statement.
Tumi Holdings is a company that offers a line of travel and business products and accessories in multiple categories. Its products are sold in approximately 2,100 points of distribution in New York, Paris, London and Tokyo, as well as in the world’s top department, specialty and travel retail stores in over 75 countries.
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