On Thursday an agreement was made regarding Samsonite's acquisition of luggage-maker rival Tumi Holdings worth $1.8 billion.  The merger of the two companies will better provide the needs of business travelers.

Tumi was founded 40 years ago by a Peace Corps veteran and named the company after an Incan ceremonial knife. Samsonite's acquisition of Tumi will make a gateway into high-end luggage.  Based on the terms of the agreement, Samsonite will pay Tumi $26.75 a share in cash which is 32% higher compared to the closing price on Wednesday, The New York Times reported.

According to Bloomberg's data compilation, the transaction cites Tumi at about thrice its trudging year revenue, doubling the 1.5 times median for acquisitions in the footwear, accessories and apparel section over the past three years. To date, Samsonite has already nine acquisitions starting 2012 as it venture into distribution and sale of other travel and non-travel bag brands.  It also considers doubling the yearly sales to $4.7 billion in the coming six years.

"The Tumi acquisition is coherent with Samsonite's strategy to create a range of travel luggage brands at various price points," said Mario Ortelli, an analyst at Sanford C. Bernstein, said ahead of the announcement. "Tumi is one of the few high-end bag brands in the high-end travel business."

Samsonite said that deal would be funded through bank financing. The transaction was anticipated to close in 2016's second half which also depends on the authorization of shareholders and regulators, reports Reuters.

"It will meaningfully expand our presence in the highly attractive premium segment of the global business bags, travel luggage and accessories market," Samsonite Chief Executive Officer Ramesh Tainwala said in a statement.

This is the biggest acquisition deal so far made by Samsonite. Samsonite will finance the agreement with resorted loans from HSBC, Morgan Stanley and SunTrust and Mitsubishi UFJ Financial Group. Morgan Stanley Asia Ltd. will be Samsonite's financial advisor while Tumi's financial advisor will be Goldman Sachs.