Bloomberg News

Tumi Files to Raise $300 Million in Initial Public Offering

December 13, 2011

(Updates with Samsonite offering in fifth paragraph.)

Dec. 13 (Bloomberg) -- Tumi Holdings Inc., the designer of black-nylon luxury travel bags, is seeking as much as $300 million in an initial public offering.

The company didn’t specify the number or price of shares it will offer in a regulatory filing today. The offering size is a placeholder amount used to estimate registration fees and may change.

Tumi surpassed $220 million in sales in the first nine months of the year, selling items such as garment bags and suitcases through about 1,600 locations worldwide. The company, founded in 1975, is pursuing the offering as luxury-goods retailers outperform their lower-priced peers.

Sales at U.S. luxury stores open at least a year will climb 7.5 percent, faster than the 6.7 percent gain in November and December of 2010, according to the International Council of Shopping Centers. Other retail groups will post slower or unchanged sales growth, the New York-based trade group said last month.

Samsonite International SA, which Tumi lists as a competitor, sold shares to the public in a Hong Kong IPO in June, raising about $1.3 billion after pricing at the bottom of a revised range. Samsonite’s stock has sunk 24 percent since then, valuing the company at about 15 times projected 2011 earnings. The company reported $1.2 billion in revenue for the first nine months of the year.

Zynga, Kors

Tumi announced the IPO during what may be the biggest week for U.S. initial offerings in nine months. Eleven companies, including game maker Zynga Inc. and Michael Kors Holdings Inc., are seeking as much as $3.8 billion in U.S. IPOs this week, according to data compiled by Bloomberg. That would be the most since March, when HCA Holdings Inc. raised $4.4 billion.

Tumi, based in South Plainfield, New Jersey, booked net income of $3.1 million in the nine months through Sept. 25, compared with a loss of $6.4 million a year earlier, according to its filing.

Existing holders may sell shares in the IPO, the prospectus shows. Chief Executive Officer Jerome Griffith is the biggest individual shareholder, with a stake of 3.6 percent.

Doughty Hanson & Co. took over Tumi in 2004. Tumi plans to use the proceeds of the offering to repurchase outstanding stock from the London-based buyout firm, according to the filing. A spokesman at Doughty Hanson wasn’t immediately able to comment on the use of the proceeds.

Goldman Sachs Group Inc. and Credit Suisse Group AG are managing the sale. The shares will trade under the symbol TUMI.

--With assistance from Cotten Timberlake in Washington. Editors: Julie Alnwick, Elizabeth Wollman

To contact the reporter on this story: Lee Spears in New York at

To contact the editor responsible for this story: Jennifer Sondag at

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