Vaibhav Saharan

Event-Driven

<p>Tumi's price tag of $26.75/share or $1.8b (10% lower than $2b in initial news flow) values the company at 27.5x NTM earnings. For the standalone Tumi, 2016 was poised to be another year of gross margin expansion invested in SG&amp;A such that ~5% EPS growth would accrue entirely from buybacks and lower tax rate. </p><p>While Samsonite's 2H15 and 1H16 were expected to be weak (see <a href="https://www.smartkarma.com/insights/samsonite-rolling-into-short-term-bumps-after-bag-ging-years-of-impressively-consistent-growth-0bf945c8-572f-4382-8134-89c34a70723c" target="_blank">note</a>), the timing of the deal makes me wonder if the FY results to be declared on 15 March will show even weaker 2H15. Here's…</p>

Tumi's price tag of $26.75/share or $1.8b (10% lower than $2b in initial news flow) values the company at 27.5x NTM earnings. For the standalone Tumi, 2016 was poised to be another year of gross margin expansion invested in SG&amp;A such that ~5% EPS growth would accrue entirely from buybacks and lower tax rate. While Samsonite's 2H15 and 1H16 were expected to be weak (see note), the timing of the deal makes me wonder if the FY results to be declared on 15 March will show even weaker 2H15. Here's…

Samsonite

The Bigger Samsonite: Not Too Exciting