Mips has announced the acquisition of Koroyd for 65 million euros to enhance its competitive position in the helmet safety market.

Information on the Target

Mips is a leading company in safety solutions for helmets, known for its patented products that enhance the safety features of various types of headgear. Having debuted on the Stockholm Stock Exchange in spring 2017 at a price of 46 SEK, Mips quickly gained investor attention due to its high growth rates and scalability. The company achieved a remarkable peak in market interest towards the end of 2021 when its share price exceeded 1,200 SEK, reflecting a P/E ratio around 100x. Mips has over 150 brands in its clientele, focusing mainly on three segments: Sports, Motorcycle, and Safety, with the Sports segment accounting for approximately 90% of its revenue. Recent challenges, however, led to a significant decline in sales during the high inflation years of 2022 and 2023.

Recently, Mips announced the acquisition of Koroyd, a Monaco-based company specializing in impact protection technology for head and body safety. This move is intended to enhance Mips' competitive position within the helmet safety market. Following the acquisition, Mips expects a substantial improvement in earnings per share as well as continued double-digit growth, indicating a promising turnaround as the company normalizes from prior setbacks.

Industry Overview in the Target’s Specific Country

The helmet safety industry in Sweden has seen a growing emphasis on safety innovations due to the increasing popularity of outdoor activities and sports. The pandemic catalyzed a surge in demand for personal safety equipment, including