Benefit Systems with long-term financing for growth strategy across six markets
Benefit Systems will be supported by Santander Bank Polska S.A. and Bank Gospodarstwa Krajowego (BGK) in the implementation of its ambitious growth strategy until 2027. The banks will provide the Company with long-term financing of PLN 1.775 billion. The funds will be used, among other things, for partial payment of the purchase price of 100% of the shares of the Turkish MAC Group and for capital expenditure related to organic growth and acquisitions.
The long-term financing agreement is another step bringing us closer to finalising the acquisition of the MAC Group in Turkey and implementing our strategy. With the acquisition of the MAC Fitness chain, we will have a high-quality club base and an excellent position for further organic growth in a market with very high potential for sales of sports cards. We are also not slowing down on other markets where we are working hard on fitness clubs openings. - says Marcin Fojudzki, member of the Management Board of Benefit Systems, adding: We view the first months of this year on all our markets positively and the results are in line with our expectations. We are well supported by global trends that reinforce interest in physical activity and conscious care for health.
The Company plans to prepay the loan with funds from contemplated issue of new shares (without additional prepayment fees).
The financing has been granted until 30 November 2029 and is secured, among other things, by selected assets of the Benefit Systems Group. The utilization of the funds is subject to the fulfilment of conditions precedent, including the repayment of the debt arising from the loan agreement concluded in 2022 with the European Bank for Reconstruction and Development and Santander Bank Polska S.A. Benefit Systems' intention is to repay the debt from its own funds in the second quarter of this year. As part of the cooperation with Santander Bank Polska, Benefit Systems will maintain its existing revolving credit facility and a limit for bank guarantees in the total amount of PLN 175 million (included in long-term financing).
Comment from Małgorzata Kloka, Benefit Systems Finance Director: The agreement signed with Santander and BGK assumes that we have the option to partially repay the loan with the funds from potential share issue. Such an arrangement gives us flexibility in the dynamic acquisition process in Turkey. Moreover, some funds from the new facility will not be utilized immediately and will be available for future investment needs - in line with the plans announced in the 2025-2027 strategy. We also maintain an overdraft facility and a limit for bank guarantees with Santander Bank Polska, which, due to the growing number of clubs in the Group, are an important element of the new agreement for us.
Jolanta Jędrysek
Benefit Systems has been operating on the Polish market for over two decades and is one of the leaders in providing non-financial benefits that support employee wellbeing. The company is the creator of the MultiSport Programme, which enables physical activity in sports facilities throughout the country. Its portfolio also includes the MyBenefit cafeteria platform and the MultiLife wellbeing programme. For several years now, the company’s sports offer has been developed on foreign markets, including the Czech Republic, Slovakia, Bulgaria, Croatia, and Turkey. The Benefit Systems Group also operates fitness clubs (in Poland it is responsible for Zdrofit, Fabryka Formy, FitFabric, Fitness Academy, Organic Fitness, My Fitness Place networks; in other markets it manages over 70 facilities). An important area of Benefit Systems activities is the promotion of an active lifestyle at every stage of life, which is why the company implements initiatives supporting physical activity of children, adults, and seniors, also as part of the MultiSport Foundation. Since 2018, Benefit Systems has been part of the global B Corp initiative, bringing together companies operating and engaging in solving the most important social problems. More information can be found at benefitsystems.pl/en.
