Benefit Systems has signed contracts to purchase shares in the fitness chains Zdrofit, Fitness Club S4 and Tiger. The three health providers operate in total 35 sports and recreational facilities across the country. In a first stage of the transaction, the agreement provides for acquiring 30% of the shares in Fitness Club S4 and Tiger as well as increasing the participation in Zdrofit from 28% to 55%. The total value of these investments adds up to EUR 5.1 million (PLN 22.4 million). Moreover, Benefit Systems is granted the right to increase its stake in each of these companies to 100% during the next four years.

Furthermore, Benefit Systems signed a letter of intent with health provider Calypso aiming to increase the number of shares held in Calypso Fitness SA from 50.1% to 83.4%. The value of this investment is expected to amount to EUR 18.6 million (PLN 81.3 million), of which EUR 6.3 million (PLN 27.5 million) will be paid in cash and the remainder in shares of Benefit Systems SA.

“We continuously implement measures which increase our involvement in the Polish fitness market. Our investments in fitness clubs have the objective of creating a stable and attractive infrastructure for the growing number of users of our MultiSports cards,” said Grzegorz Medz, board member of Benefit Systems SA. He adds: “A wide and interesting range of sports and leisure activities as part of our investments and its adaptation to the needs of the customers has a positive effect on the sales of our Multisport cards, which in turn positively affects the financial result.”

Fr several years, Benefit Systems SA has been pursuing a strategy of horizontal integration. The company invested in health providers in order to contribute to the development and professionalization of the industry. To date, the Company holds majority interests in the operators Fitness Academy and Fabryka Formy and has so far been a minority shareholder in in Calypso and Zdrofit.

Benefit Systems has been operating on the Polish market since 2001 and has since 2011 been listed on the stock exchange in Warsaw. The company operates the MultiSports programme which supports the active and healthy lifestyle of its users. The programme is marketed to corporate clients, which provide their employees with a MultiSport card as a bonus and as part of the occupational health management. The cards provide access to nearly 4,000 sports and leisure facilities in more than 650 cities across the country. Since 25 June 2016, card holders can take advantage from the public bicycle systems in 12 cities. As part of the holiday programme, the offering also includes public pools, rope parks and other outdoor activities. At quarter-end closing, more than 677,000 people owned one of Benefit Systems’ cards. The company expands its concept in the Czech Republic, Slovakia and Bulgaria, where the number of MultiSports card holders is growing steadily.

Source: Benefit Systems
Image: Benefit Systems