Carlyle, CVC, KKR show interest in potential takeover of Samsonite

The investment funds may consider teaming up and forming a consortium if Samsonite decides to move forward with a plan to go private, in that case, more bidders could emerge

By Dong Cao, Vinicy Chan and Manuel Baigorri

GGlobal buyout firms including Carlyle Group Inc. and KKR & Co. have shown preliminary interest in a potential takeover of Samsonite International SA, according to people familiar with the matter.

Other private equity firms making early assessments on a potential bid for the Hong Kong-listed luggage maker include Bain Capital and CVC Capital Partners, the people said, asking not to be identified because the deliberations are private. China-focused DCP Capital Partners, a minority shareholder in Samsonite, is also evaluating coinvesting with other bidders, the people said.

The investment funds may consider teaming up and forming a consortium if Samsonite decides to move forward with a plan to go private, the people said, adding that more bidders could emerge.

 

Samsonite’s shares erased losses following the Bloomberg News report, jumping as much as 2.3% after the mid-day trading break in Hong Kong. They’d fallen 1.9% in the morning session. 

The fragmented ownership structure of Samsonite, which has headquarters in Massachusetts and Luxembourg, may create some hurdles for any take-private deal as it would take only a few opponents to block a plan, the people said.

Talks are preliminary and the parties may decide against pursuing a deal, the people said. Representatives for the buyout firms declined to comment. A Samsonite representative didn’t immediately respond to a request for comment.

Samsonite has been weighing its options after receiving takeover interest from private equity firms, Bloomberg News reported in late February. Some buyout firms have been considering acquiring the company and relisting it elsewhere later, people familiar with the matter said at the time.

Samsonite has a market value of about HK$43 billion ($5.5 billion). Its shares surged as much as 18% on Feb. 27 following Bloomberg’s report on the company considering options, and the stock has risen a further 10% since.   

Samsonite, which traces its roots back to 1910, was bought by CVC for about $1.7 billion in 2007. It went public in Hong Kong four years later as consumer-goods makers looked to capitalize on China’s increasing affluence. The company also sells luggage and travel accessories under brands including American Tourister, Tumi and High Sierra. Samsonite has studied the possibility of a second listing in the US, Bloomberg reported previously.