Luggage giant Samsonite International S.A. Has acquired web only travel bag retailer eBags Inc. For $105 million in cash. This is the second major acquisition in a little more than a year for Samsonite, which purchased upscale luggage retailer Tumi Inc., No. 393 in the Internet Retailer 2016 Top 500 Guide, for $1.8 billion in March 2016. EBags, launched in 1999, generated $158.5 million in sales last year, up 23.5% from $128.3 million the last year, Samsonite said in announcing the deal. Samsonite cited eBags ecommerce success as the driving force behind the acquisition. 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, Samsonite CEO Ramesh Tainwala said.

Ecommerce is rapidly becoming an essential part of our business, and will continue to be central in our strategy moving forward. The future of the eBags executive team and staff isn’t detailed in the purchase announcement, and Samsonite couldn’t instantly be reached for comment. EBags co founder Peter Cobb, through e-mail, declined to comment further on the sale of his business, saying only he’s Very excited about the possibilities of the two companies.,The $105 million acquisition price is 66.2% of eBags 2016 internet sales, suggesting that eBags wasn’t generating much profit. The 0.66 multiple is slightly lower than the average 0.77 multiple of prior year sales in latest acquisitions.

According to Internet Retailer’s Valuing America’s Top E Merchants 2017 special report, the average ratio of acquisition price to internet sales wherein web only or catalog retailers were acquired has averaged 0.77 on all purchases in 2014, when Amazon.com Inc.’s retail dominance became more apparent. In comparison, an Internet Retailer analysis of over two dozen acquisitions in 2009-2013 showed a ratio of acquisition price to internet sales of 1.56. But occasionally companies pay a lot more for e retailers. Wal Mart Stores Inc. , which acquired electronic commerce Jet.com for $3.3 billion last year, paid more than 4 times electronic commerce Jet’s 2016 revenue.

Consumer packaged goods giant Unilever in July paid 6.6 times the prior year sales for subscription razor and shaving products e retailer Dollar Shave Club. Those deals were great news for internet retailers seeking to raise money because they showed that there may be good outflows for investors who put money in on-line Retail companies, says Randy Nicolau, Chief executive officer of Poppin.com, No. 519 in the Internet Retailer 2016 Top 1000. Before those deals, most of the recent acquisitions of online retailers had been fire sales, of struggling e retailers like Gilt Groupe at Hudson’s Bay Co. , or sales to Amazon of successful businesses like Zappos or Quidsi, the parent company of nappies.com. However the sales of Jet.com and Dollar Shave Club show that there are buyers other than Amazon willing to pay hefty multiples for a successful e retail businesses, Nicolau says. For more Samsonite Travel Luggage visit the Luggage Supermarket!

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