NEW YORK (TheStreet) -- Shares of Tumi Holdings (TUMI) are increasing by 0.38% to $26.31 in pre-market trading on Friday, after Samsonite International (SMSEY) agreed to buy the high-end suitcase maker for $1.8 billion, in a move that expands its luxury luggage products.
Samsonite will pay $26.75 per share for South Plainfield, NJ-based Tumi in an all cash transaction, the company said in a statement.
Yesterday, Tumi's stock surged by 30.15% to $26.20 on reports that the companies were nearing a deal.
"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 is a perfect strategic fit for our business," Tainwala added.
Hong Kong-listed Samsonite said it plans to expand Tumi's presence in Asia and Europe and strengthen its business in North America.
Tumi also makes travel and business products such as briefcases and wallets.
"It is a perfect match in many aspects such as retail channels and regional mix, category mix and even price points," Boyoung Kim, an analyst at BNP Paribas, told Reuters. "It can bring huge synergies in the long term."
Last February, Samsonite bought travel retailer Rolling Luggage, which has stores in airports. The company also acquired retailer Chic Accent in October, Reuters noted.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C+ on the stock.
The primary factors that have impacted the rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.