Shares of Samsonite Corporation (OTCBB: SAMC) jumped up today after news of its acquisition by CVC Capital Partners surfaced. In early trading today, SAMC was up 11 cents (8 percent) to $1.44 per share on volume of 470,728 shares.
SAMC entered into a definitive merger agreement to be acquired by funds managed and advised by CVC Capital, a leading global private equity firm. The all-cash transaction is valued at approximately $1.7 billion, including the assumption of debt.
Marcello Bottoli, CEO of SAMC, said in a press release: “We believe that this transaction delivers excellent value to all our shareholders. I am excited to continue our successful journey to create the world’s leading travel lifestyle brand together with CVC Capital Partners.”
Under the terms of the agreement, CVC will acquire all of the outstanding common stock of SAMC for $1.49 per share in cash.
The transaction was unanimously approved by the Board of Directors of SAMC.
The transaction is expected to close during the fourth quarter of 2007 and is subject to customary closing conditions, including regulatory review in the U.S. and Europe. CVC has received certain funds debt financing commitments from third-party financing sources and, accordingly, closing is not subject to the receipt of financing.
Hardy McLain and Luigi Lanari of CVC stated in a press release, “CVC Capital Partners is delighted to have reached agreement to acquire Samsonite, the world’s leading travel lifestyle brand. We look forward to working with Marcello Bottoli and his team to realise the full potential of the brand. China and India present particularly interesting opportunities for growth.”
Merrill Lynch International acted as financial advisor and Skadden, Arps, Slate, Meagher & Flom (UK) LLP acted as legal advisor to SAMC in connection with the transaction. UBS and Lehman Brothers Inc. acted as financial advisors and Paul, Weiss, Rifkind, Wharton & Garrison LLP and SJ Berwin LLP acted as legal advisors to CVC.
SAMC is one of the world’s largest manufacturers and distributors of luggage and markets luggage, casual bags, business cases and travel-related products under brands such as SAMSONITE Black Label, LAMBERTSON TRUEX, SAMSONITE, AMERICAN TOURISTER, LACOSTE and TIMBERLAND.