Samsonite International paying $105m for eBags
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Hong Kong-headquartered luggage company Samsonite International is to buy online retailer eBags for US$105 million cash.
The deal is part of Samsonite’s strategy to accelerate the growth of its e-commerce business.
“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,” says Samsonite CEO Ramesh Tainwala. “E-commerce is fast becoming a vital part of our business, and will continue to be central in our strategy.”
EBags president/CEO Mike Edwards describes the move as “a perfect match”.
Founded in 1998, eBags offers travel bags and accessories including backpacks, handbags, business bags, travel accessories and apparel from a range of travel and fashion brands. It had net sales of US$158.5 million last year, up 23.5 per cent from the previous year.
The acquisition is expected to be completed within a couple of months.
Questions & Answers
Q.What is the primary reason Samsonite International is acquiring eBags?
What is the primary reason Samsonite International is acquiring eBags?
Samsonite aims to accelerate the growth of its e-commerce business. The acquisition will expand its online retail capabilities, using eBags' immediate resources and digital expertise to drive stronger sales across Samsonite's brand portfolio.
Q.What was eBags' financial performance like last year?
What was eBags' financial performance like last year?
Last year, eBags reported net sales of US$158.5 million. This figure represents a growth of 23.5 per cent compared to its sales in the previous year, indicating strong recent performance.
Q.When is the acquisition expected to be finalised?
When is the acquisition expected to be finalised?
The acquisition of eBags by Samsonite International is anticipated to be completed within a couple of months from the announcement date. This suggests a relatively swift conclusion to the deal.
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