Mumbai: Samsonite International S.A. took a significant step in the luxury luggage and leather goods market today by acquiring Hartmann, the iconic American luggage brand from Clarion Capital Partners. The acquisition enables Samsonite, the world’s largest travel luggage company, to expand its presence in the lucrative high end market in the United States and internationally.
“The Hartmann brand is an important addition to our portfolio and gives us the ability to successfully expand our presence in the global luxury luggage sector,” said Tim Parker, Chairman and Chief Executive Officer of Samsonite. “For 135 years, Hartmann has produced America’s finest luggage and leather products and established itself as a mark of quality among American luxury consumers. With Samsonite’s resources, depth of experience, and distribution capability, we can strengthen Hartmann’s business in North America and introduce the brand to new markets in Asia and Europe, and millions of new customers worldwide.”
“This brand has a unique heritage, with its products carried by Presidents and titans of industry,” Parker added, “and we intend to honor and preserve the tradition of stylish design and impeccable quality as we revitalize the brand as the global gold standard of luxury luggage.”
Under the terms of the transaction, Samsonite acquired Hartmann in an all-cash merger valued at US$35 million. Hartmann’s net sales grew by 26% to US$23 million in 2011. The purchase was funded from internal sources and Samsonite’s recently expanded revolving credit facility.
The acquisition, which closed on August 2, 2012 simultaneously with the signing of the agreements, is anticipated to be accretive to Samsonite’s earnings per share in 2013, the first full year post-closing, and increasingly accretive in the following years.
Eric Kogan, a Partner with Clarion Capital commented, “I want to thank our employees for their hard work during Clarion’s ownership, and believe that this iconic American brand has a bright future with Samsonite.”
Founded by Joseph S. Hartmann in 1877, Hartmann’s range of luggage, business cases, tote bags and leather accessories appeals to business and leisure consumers alike. The brand is currently offered through multiple channels, including leading retailers, corporate clients, Hartmann retail stores and the company’s website. Samsonite will reinvigorate the brand to generate growth by expanding global distribution, launching flagship retail stores, enhancing the brand presentation at retail and revitalizing the product offering.
This is Samsonite’s second strategic acquisition in the past month. The Company also announced today that it has completed its acquisition of the High Sierra Sport Company, a U.S.-based manufacturer and distributer of casual bags and adventure travel luggage, which Samsonite announced in July.
Mr. Parker concluded, “We are tremendously excited about having the opportunity to steward the iconic Hartmann brand, revitalizing it and yet preserving and building on its great legacy.”
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