In a $1.7-billion (Rs68,731 crore) all-cash deal that includes debt, luxury luggage brand Samsonite, one of the world''s largest luggage brands, has agreed to be bought by the London-based private equity firm CVC Capital.

The transaction represents $1.49 a share, a 12-per cent premium to Samsonite''s closing share price on Tuesday and CVC is paying more than 16 times trailing Ebitda.

Samsonite manufactures and distributes luggage and travel-related products under its own brands Samsonite Black Label, Lambertson Truex, American Tourister and others such as American Tourister, Lacoste and Timberland.

Marcello Bottoli, Samsonite chief executive, said the deal was "excellent value" for shareholders. "I am excited to continue our successful journey to create the world''s leading travel lifestyle brand together with CVC Capital Partners."

Samsonite said entities controlled by Ares Management LLC, Bain Capital Partners LLC and Teachers'' Private Capital, the private investment arm of Ontario Teachers'' Pension Plan, own about 85 per cent of Samsonite''s common stock, have agreed to approve the transaction.

The sellers group had bailed out Samsonite in 2003 after the company faced a weakened balance sheet in 2003 and announced a recapitalisation. They originally invested a total of roughly $106 million into the company in July 2003, each putting forth about $35 million for a 56-per cent stake through convertible preferred shares. Over time, they boosted their stake to 85 per cent with fresh infusions.

The company was controlled by Apollo Management LP and Artemis SA, the parent of French retailer Pinault-Printemps-Redoute. Samsonite used the money raised to pay down some interest on the debt that had built as the company changed hands several times since the ''70s.

Samsonite almost went bankrupt in 2003 because of increasing competition, accusations of stock price inflation from shareholders, which resulted in a $24-million settlement, and a dramatic decline in demand for travel gear after the terrorist attacks of September 11, 2001.

In the late 1990s, Samsonite''s stock traded at about $50, but fell below $1 after the September 11, 2001, terrorist attacks, amid a travel-industry downturn and the company''s high debt.

Samsonite''s net sales have grown from $752.4 million in fiscal year 2003 to $1.07 billion with a and a a net loss of $6.8 million at the end of fiscal year 2007, and it was $501.9 million in debt at the end of fiscal 2007, as opposed to $371.3 million at the end of fiscal year 2003

Bain, Ares, and the pension plan, which controlled 85 per cent of Samsonite''s shares at the time of the sale, had been exploring the possibility of listing the company on the United Kingdom''s London exchange but received several unsolicited offers from private equity firms including CVC. The investment group saw better value in selling to CVC than taking Samsonite public.

Bain and Teachers'', which is the private equity arm of the Ontario Teachers'' Pension Plan, each invested about $62 million and will come away with nearly $310 million apiece through their stake sale.

Dick Millard , spokesman for Samsonite, said the company''s current operations will not change much in the immediate future despite the change in ownership. "The management team" has done a "fantastic job turning the company around," he said. "But taking it to the next stage of developments required a change in ownership."

CVC said in its press release that it expected Samsonite to continue to become more oriented toward the luxury market and increase market share in Asia should everything go according to plan, "making it highly suitable for an initial public offering at some other date."

CVC said China and India present "interesting opportunities for growth" for Samsonite.

In its SEC filing, Samsonite registered 41.9 per cent of its sales in Europe, 35.3 per cent in North America and 21.6 per cent in other markets in the 2007 fiscal year.

Samsonite, founded in Denver under the name of Shwayder Trunk Manufacturing in 1910, currently employs about 5,000 people.