NEON EQUITY AG investment EasyMotionSkin Tec AG grows into new dimension

NEON EQUITY AG investment EasyMotionSkin Tec AG grows into new dimension

• Acquisition of milongroup paves the way to becoming a holistic provider of health solutions
• milongroup has a market share of around 47% in the german-speaking part of Europe as a specialist for high-quality, highly digitalized fitness equipment in the B2B sector
• Comprehensive growth potential of EasyMotionSkin Tec and milongroup through cross-selling, development of new customer groups, internationalization and digitalization
• Sales multiplication of the EasyMotionSkin Tec Group through the acquisition
• NEON EQUITY sees increasing value of investment and plans to acquire further shares
   

Frankfurt am Main, October 12, 2023 – NEON EQUITY AG (NEON EQUITY ISIN: DE000A3DW408), a founder-led investor and growth enabler, sees its investment decision in EasyMotionSkin Tec AG confirmed by the dynamic growth course of the company. The General Meeting of EasyMotionSkin Tec recently unanimously approved the necessary capital increase in kind for the acquisition of milongroup, thus further accelerating the company's expansion. EasyMotionSkin Tec thus grows strategically as well as economically into a new dimension and becomes a holistic health solutions provider. NEON EQUITY had only recently significantly increased its stake in EasyMotionSkin Tec and plans to acquire further shares in the company in the coming months.

Acquired by EasyMotionSkin Tec on an appraised valuation basis of CHF 112 million, milongroup is a leading developer and producer of high-quality, intelligent premium exercise equipment in the B2B segment. In addition to a large number of owner-managed fitness studios, its customers include around 550 physiotherapy facilities and around 150 clinics and rehabilitation facilities. Under the milon umbrella brand, the Group offers a unique circuit training equipment concept in which the fully automatically controlled equipment is digitally networked and individually adapted to the respective user. In addition, products for flexibility training are offered under the FIVE brands. milongroup is currently focused on 10 core markets, mainly in Europe. In the german-speaking part of Europe, its market share in the premium B2B segment is around 47%. Supported by the worldwide increasing fitness trend, the expansion into further international markets and the positioning as a global provider is planned. Corresponding sales and partner structures are already in place in some cases and are being expanded. The global market for B2B training equipment is currently estimated by experts at around USD 3 billion. With a new product line that will be launched in the coming year, milongroup is increasingly addressing fitness chains as well, thus significantly expanding its target group.

With the acquisition of milongroup, EasyMotionSkin is positioning itself as a holistic healthcare provider with an international focus in both the B2B and B2C segments. The milongroup's strong presence in fitness studios and physiotherapy facilities opens up considerable cross-selling potential to the existing EasyMotionSkin product range, especially when addressing end customers. An important driver of further growth will be the bundling of the digital expertise of EasyMotionSkin and milongroup. The high level of digitization of the devices provides an excellent basis for communication with the user and thus for further product offerings.

Economically, the acquisition of milongroup will be accompanied by a multiplication of sales of the EasyMotionSkin Tec Group. While the EasyMotionSkin Group reported profitable pro forma sales of CHF 9.8 million in 2022, the subsidiaries of milon Holding generated consolidated profitable sales of CHF 29.4 million in the same period.

Thomas Olek, CEO and founder of NEON EQUITY: "We are pleased about the rapid expansion and the extremely good prospects that are opening up for EasyMotionSkin with the acquisition of milongroup. It shows that we have invested in the company at a favorable time and accordingly now participate in the very positive development. I am convinced that the company is only at the beginning of its success story and we want to continue to actively accompany the company on its way. As a holistic provider of health and fitness solutions, EasyMotionSkin perfectly meets our criteria as an impact investor."
 

About NEON EQUITY

NEON EQUITY AG invests in ESG-compliant companies with high growth opportunities in future industries such as AI, mobility, nutrition, health and energy and accompanies them in successful IPOs.

NEON EQUITY is one of the leading providers in advising on IPOs and capital market transactions and connects fast-growing ESG companies with international institutional investors. NEON EQUITY pursues a sustainable and stock market relevant strategy and advises its portfolio partners independently of banks on all capital market instruments.
 

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