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Last Updated: Thursday, 5 July 2007, 14:21 GMT 15:21 UK
Samsonite packed off for $1.7bn
Luggage at an airport
Samsonite is one of the world's largest luggage brands
Luxury luggage brand Samsonite has agreed to be bought by private equity firm CVC Capital for $1.7bn (844m).

Under the terms of the all-cash agreement, CVC will pay $1.49 a share - a 12% premium to the firm's closing share price on Tuesday.

The deal has already been approved by the firm's largest shareholders, who own 85% of the firm's stock.

Samsonite chief executive Marcello Bottoli said the deal was "excellent value" for shareholders.

Samsonite is the latest in a string of public firms to be targeted by private equity.

Private equity firms have come under increasing focus as they have begun to buy well-known names, such as UK High Street healthcare firm Alliance Boots and, most recently, the global Hilton Hotel chain.

But as private firms, which raise money from banks rather than the stock market, they do not have to issue annual reports and the sector has been criticised for opaque business practices and paying low levels of tax.

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