MIPS has signed an agreement to acquire all the shares in Koroyd, the impact-protection brand, for €40 million.
According to MIPS CEO and president Max Strandwitz, Koroyd will continue to operate separately under its leadership. But the acquisition will mean MIPS can expand its range of protection across consumer and professional uses.
“The acquisition of Koroyd marks another important step in MIPS’ long-term strategy to strengthen our position as the leader in helmet safety. This acquisition positions the group uniquely in the market and enables interesting entries into other adjacent product areas,” says Strandwitz.
Brands such as Smith and Endura have used Koroyd in their helmets. In fact, the Smith Optics Ignite MIPS helmet uses both of the ‘ingredient’ technologies.
Koroyd, which is based in Monaco and was founded in 2010, produces a variety of impact-protection technologies that span head, body and hand protection across sport, motorsport, defence, industrial safety and child-restraint systems.
Founder of Koroyd, John Lloyd, says: “From the beginning, Koroyd has been built on a culture of purposeful innovation, solving real problems with solutions that genuinely improve protection whilst putting the user experience first. In MIPS, we have found a partner who shares that ethos entirely.”
MIPS says the purchase of Koroyd amounts to €40m on a cash and debt-free basis, and with the possibility of an additional earn-out of €25m if performance targets are met.
“The acquisition is expected to contribute positively to MIPS’ earnings per share, EBIT margin, and sales growth on a short and long-term basis,” says MIPS.
