Purchase will further bolster the luggage brand’s e-commerce business and digital capabilitites.
Travel luggage company Samsonite International has entered an agreement to buy eBags, an online retailer of bags and related travel accessories, for $105 million.
The acquisition, which is expected to be completed in the second quarter of 2017, will be subject to customary adjustments for working capital, transaction expenses and net debt. It also bolsters the company’s ongoing strategy to grow its direct-to-consumer e-commerce business as well as strengthen its digital capabilities.
Further details regarding the transaction were not disclosed.
“This is an exciting day for eBags and we are thrilled to be joining the Samsonite family,” says Mike Edwards, president and chief executive officer, eBags. “Their considerable experience and well-established presence in the travel luggage industry, together with our digital capabilities and passion for travel, are a perfect match. We look forward to forging a strong partnership, and to ensuring that our customers are given the best service and a diverse and compelling product offering.”
Founded in 1998, eBags offers a range of travel bags and accessories, including luggage, backpacks, handbags, business bags, travel accessories and apparel. It currently sells a host of products from a variety of brands, including many of the brands owned by Samsonite, as well as products under its eponymous brand. In 2016, eBags recorded net sales of $158.5 million, an increase of 23.5 percent compared to the year prior.
“As the No. 1 online luggage and bag specialist in the U.S., eBags is an excellent complement to Samsonite’s existing business,” says Ramesh Tainwala, chief executive officer, Samsonite. “The acquisition provides us with a strong platform to significantly expand our direct-to-consumer online presence, not just in North America but around the world. 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. E-commerce is fast becoming a vital part of our business, and will continue to be central in our strategy moving forward.”