Transforming a provider of dietary catering into food-tech business

Company	Maczfit
PE/VC investor	Resource Partners
Investment period	2018-2021

12.8

Investment

(in Millions)

3.4

Return

2

Sales growth

(in 2.5 years)

3

EBITDA growth

(in 2.5 years)

When Resource Partners approached the market of dietary catering, it was new and rapidly developing. Growing at over 20% per year it was driven by increasing consumer focus on being healthy and „fit". Maczfit Foods sp. z o. emerged as a clear market leader, already setting trends and best practices for the entire dietary catering business in Poland.

In Maczfit, Resource Partners identified an atractive business model with very high cash conversion related to prepayment and make-to-order sales (historically 75-80% of EBITDA converted to cash). The company had a strong management team - the owner and CEO, supported by the second line of managers, had a good grasp of the operations and was constantly improving his business by building the organization and launching new sales initiatives. Well defined organic growth options related to the investment in new facility which could triple the capacity were coupled with ample opportunities for market consolidation.

On 18th Dec. 2018 Resource Partners acquired a majority stake in Maczfit from its founder and CEO. The fund owned 70% shares/voting rights while the remaining shares remained with the founder. The deal was fully equity financed.

Main objectives
of funding

Strengthening market leadership in a fast-growing market.
Investment into new production facility.
Digitalization of processes and of consumer interface.

What changed in the company after PE/VC investment

Maczfit changed from from pure provider of dietary catering into food-tech business offering modern food solutions. It was the first in the market to introduce a mobile app allowing to place and customize orders and offer many lifestyle-related features.
Revenues doubled driven by an increased number of sets delivered.
Maczfit brand awareness increased. Quality of products supported by marketing activities built Maczfit brand to be the clear category leader.
Loyalty program increased the customer lifetime and to grow the effectiveness of marketing spend.
Data-driven approach to marketing initiatives led to a significant optimization of marketing spend.
The company launched new growth initiatives: (i) vending machines, (ii) menu selection concept allowing for own daily diet composition and (iii) operations in Berlin, which produced new revenue streams.
In May 2019 Maczfit relocated to the new production facility and tripled the previous capacity.
EBITDA margin improved from 13% to over 20% in Q4 2020 thanks to optimization initiatives like automation of production and streamlining of the production process.
An experienced COO and CMO were recruited to strengthen the management team. Maczfit is the only company on the dietary catering market with a complete, professional management structure.

ESG related initiatives and accomplishments

Carbon footprint

Maczfit invested in photovoltaic installation at the factory. Solar panels generate app. 52 MWh of electric energy annually which results in the annual reduction of carbon footprint by app. 24.3 tons of CO2.

Employee satisfaction

The company built an outdoor recreational space at the new facility and subsidized employee meals.

Community

During the COVID-19 lockdown the company supported local communities by delivering free meals to the medical personnel and seniors.

Governance

The company was transformed from founder-led to a professionally managed organization, incl. introduction of supervisory board, increasing the Board size from 1 to 3 board members, introduction of controlling procedures and audit by the ‘big four’ auditors.

Diversity

The female representation in senior management was increased to 2 out of 6 and to 1 out of 3 in the Management Board.

Cooperation with Resource Partners brought massive growth of Maczfit. For me, teaming up with people with exceptional business instincts was the greatest value. Priceless lessons for an entrepreneur.

Maciej Lubiak

the founder and CEO of Maczfit