Samsonite International SA, the world’s biggest luggage maker, has its eyes on adding a handbag brand and is open to a deal that could rival its US$1.8 billion purchase of Tumi, company chairman Timothy Parker said.
Handbags would help Samsonite fill a gap as the company focuses on boosting sales of office gear and non-travel products to women, Parker said in an interview last week.
Products designed for women account for less than 5 percent of the company’s sales and it aims to eventually boost that ratio to a quarter.
“Strategically, we are quite interested in handbags. We want to find a brand that fits with the rest of our portfolio of products,” said Parker, who has served as chairman since 2008. “The one product we don’t have a big presence in is handbags.”
Samsonite, which posted record net sales last year, is the dominant player in the US$19 billion global market for luggage. The company, which is listed in Hong Kong and is based in Mansfield, Massachusetts, is seeking to expand sales outside North America and increase its range of products.
Executives said they are optimistic about growth, with global travel and consumer sentiment on the upswing.
Samsonite shares have jumped 22 percent in the past year. The stock yesterday gained as much as 2.7 percent in Hong Kong, while the benchmark Hang Seng index slid.
Parker said that Samsonite is not actively approaching potential buyers, and the company will likely spend the next year or two consolidating after its US$1.8 billion acquisition of luxury bag maker Tumi Holdings Inc in 2016 and the US$105 million purchase of online retailer eBags Inc last year.
The non-travel products market could be a potential space for deals in the future, he said in a separate interview with Bloomberg TV on Thursday.
Samsonite would be prepared to pay a premium and is interested in a handbag brand that has an international footprint, Parker said.
“Most handbag brands are owned by luxury brands and few are open to selling,” he said. “We are not afraid of paying a good price for a good business. We certainly have the firepower to do it. A good fit is key.”
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