Samsonite Has Completed Its Acquisition Of Tumi.

After Monday, the world's largest

Luggage maker Samsonite International SA (1910.HK)

International Limited announced that it had completed the acquisition of Tumi Holdings Inc. (NYSE:TUMI).

Tumi

In July 13, 2016 and July 26, 2016, shareholders of Tumi Inc. and Samsonite adopted the agreement of two companies at the annual general meeting of shareholders.

Samsonite announced in March 4th this year that it will buy Tumi Holdings Inc. in cash with a total of 26.75 US dollars or about 1 billion 824 million 100 thousand US dollars. This purchase price is 13.6 times that of the latter 2015 in the 2015 core year, and Tumi Holdings Inc. has become Samsonite's largest acquisition.

To reach a deal, Samsonite seeks a maximum of 2 billion 425 million dollars for the deal, or about HK $18 billion 915 million.

Samsonite CEO Ramesh Tainwaia said after the paction that the acquisition of Tumi Holdings Inc. was a "pformational" strategy paction for the group's high-end brand vacancy.

Tumi Holdings Inc. has a limited overlap in market positioning, price and distribution and entry-level brand American Tourister and Holdings brand Samsonite Samsonite.

He also suggested that mergers could boost global market share from 9% to 12%.

The deal took place at a time when Samsonite's global sales growth slowed.

The giant has been trying to stop the slowdown through acquisitions, but the market is still worried about the company's future.

In early July, Deutsche Bank of Deutsche Bank AG (DBK:Xetra) released a report that lowered the target price of Samsonite (1910.HK), from HK $23.03 to HK $22.57, with an amplitude of 2%.

Deutsche Bank said that the group's sales in Europe, China and the US Department stores were weak, thus reducing Samsonite's annual profit forecast of 4% in the -2018 fiscal year 2016 fiscal year.

At the beginning of this year, Goldman Sachs Group Inc (NYSE:GS) Goldman Sachs and Credit Suisse Group AG VTX:CSGN (VTX:CSGN) and Credit Suisse also sharply lowered the target price of Samsonite to reflect that the main market of the bag manufacturing giant came from the strong dollar market, and the 60% production cost was calculated in US dollars, which would be a major negative impact on the exchange rate problem.

Even after excluding the exchange rate effect, Samsonite group's most important weakness in the US and Asia Pacific markets made it difficult for the company to maintain its previous growth.

Samsonite has shown signs of slowing down in the past year and a half, especially in the Chinese market, which is experiencing double economic slowdown and anti corruption. Samsonite has largely relied on Chinese government procurement business to shrink from nearly $100 million to only millions of dollars.

Samsonite's net sales rose only 0.3% in the first quarter, while the fixed exchange rate rose by 4.6%, compared with 11.9% in the 2015 fiscal year.

During the period, the net sales in the Asian market decreased by 1.1% to 229 million 500 thousand US dollars, while the fixed exchange rate increased by 4%.

Fixed exchange rate, Hong Kong and Macao sales decreased by 19.1% due to the decrease in the number of visitors from mainland China, while the second largest Asian market, South Korea's sales also fell due to a weak consumption intention and 1.4%.

Sales of department stores were also reduced to e-commerce due to declining orders. The largest market in mainland China decreased by 0.3%, compared with the same period last year.

Outstanding performance in the region included 36.2%, 21.3% and 47.5% growth in Australia, Japan and the Middle East.

North America sold for $183 million 900 thousand, up 0.8% from the same period last year, and the fixed exchange rate rose by only 0.4%, mainly supported by wholesale channel growth, while retail sales fell 2.8% over the same period last year.

The group said that although the number of foreign tourists has not yet been restored, sales in the same store in the United States have continued to improve.

Europe benefited from the expansion of American Tourister, which increased by 11.5% to $118 million 900 thousand a year, and the fixed exchange rate narrowed to 6%.

Fixed exchange rates have seen double-digit growth in developed markets such as Spain, Germany, Britain and Italy and emerging markets such as Russia, Turkey and South Africa.

Latin American sales decreased by 8% to US $34 million 70 thousand compared with the same period last year, while the fixed exchange rate increased by 6.9%.

Corporate sales fell 3.5% to 1 million 911 thousand dollars.

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Despite the fact that the price has been lowered, Hongkong's private Manas Capital Manas Asian Equities Value Fund has recently increased its holdings to Samsonite. The founder of the fund, Anuj Sehgal, said that once acquiring Tumi, Samsonite will occupy about 10% of the global luggage market.

Samsonite (1910.HK) closed at HK $22.05 on Monday, increasing by 0.91%.