Luggage handler Bags Inc. sold for $275M

Orlando baggage-handling company Bags Inc. has been sold for $275 million to a national parking conglomerate SP Plus Corp., the companies said Wednesday.

Bags Inc., headed by founder Craig Mateer, delivers luggage and bags from airports to hotels, working with airlines, hotels and resorts.

With the sale, Bags Inc. will continue to operate as an independent company based out of Orlando. Earlier this year it started work on a new global headquarters near the Amway Center, moving from a spot near SeaWorld.

SP Plus CEO Marc Baumann said Bags Inc. president Bob Miles will run the division. Mateer will still be involved with the company, a SP Plus representative said.

The deal is subject to regulatory approval and until then will operate as separate companies, SP Plus said in a statement.

Last year, Bags Inc., officially known as Baggage Airline Guest Services Inc. and subsidiary Home Serv Delivery LLC, delivered more than 5 million checked bags to and from hotels and resorts, operating in more than 250 cities.

“We believe this transaction presents the ideal opportunity for the continued growth of our company,” Mateer said a statement from SP Plus. “The SP+ team understands our business, and has the experience and resources to help make Bags more valuable to our clients.”

Chicago-based SP Plus Corp. (NASDAQ: SP) is a contractor that operates parking lots for customers such as airports, shopping centers and arenas. It has an office on International Drive in Orlando.

Some of SP Plus’ clients include Miami International Airport, the City of Tampa and Madison Square Garden in New York.

Bags Inc. has grown from Mateer’s City Knights Valet company 25 years ago into an international player in the tourism industry.

Last year, the Orlando company had revenues of $145 million. It also has a business line doing valet parking, as well as working with airlines on remote check-ins. It allows passengers to check bags and check in straight from airports.

Bags Inc. has been growing fast in recent years, bringing its total number of full-time employees up to 3,000, SP Plus reported Thursday. That’s up from about 1,875 earlier in the year, Bags Inc. reported.

“The company is operated by a very talented and experienced management team,” said Baumann in a call with investors. “Our intention is to operate Bags as a standalone business.”

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