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.