After L'Occitane, coveted by Blackstone, Samsonite's turn has clearly come. Several big names in private equity are circling the world's number one luggage maker and its 17% market share, including Carlyle, CVC and KKR.

Renowned on every continent, the century-old brand - originally American - enjoys undeniable ubiquity and real pricing power, thanks in part to its reputation for quality and the lifetime warranty offered to its customers.

In US dollars, Samsonite generates profits of between $300 and $400 million, for a market capitalization of $5.3 billion. The company also carries $1 billion of net debt on its balance sheet, inherited mainly from the acquisition of Tumi in 2016.

This operation was carried out at x14 the EBITDA of the target, which had neither the scale nor the reputation of its acquirer. Masked by the pandemic episode, the integration went smoothly and is now delivering appreciable gains.

Last year, Samsonite generated $670 million in operating profit before depreciation and amortization. This figure should reach $800 million by 2023. This brings the current enterprise value to x8 EBITDA.

Six years ago, the baggage handler was the target of activists concerned about possible fraudulent dealings by CEO Ramesh Tainwala. He was immediately replaced.

Samsonite had also suffered from American protectionist measures. The company quickly managed to absorb the shock by adjusting its operating model.

The situation could therefore be of interest to arbitrage enthusiasts.