EDENRED (EPA:EDEN) - EDENRED S.A.: EDENRED ENTERS THE UK FLEET AND MOBILITY SOLUTIONS MARKET, ONE OF THE LARGEST IN EUROPE
Transparency directive : regulatory news
27/11/2018 08:00
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Press release
November 27th, 2018
EDENRED ENTERS THE UK FLEET AND MOBILITY SOLUTIONS MARKET, ONE OF THE LARGEST
IN EUROPE
Edenred, the world leader in transactional solutions for companies, employees
and merchants, today announced the signing of an agreement to acquire 80% of
the share capital of The Right Fuelcard Company (TRFC) group, the number four
fuel card program manager in the United Kingdom. By expanding into the UK
market, one of the largest in Europe(1), Edenred is consolidating its position
as a global provider of fleet and mobility solutions in line with its Fast
Forward strategy.
With the acquisition of the TRFC group - a company that helps 27,000 corporate
clients in the United Kingdom optimize the management of their heavy and light
vehicle fleets - Edenred is establishing a foothold in a major European fuel
card market. The TRFC group's 150,000 cardholders can fill up at 90% of
UK service stations using monobrand fuel cards, such as the euroShell and BP
Plus cards, or multibrand cards, which provide access to independent and
supermarket-based fuel retailers. The TRFC group, based in Leeds and Glasgow,
is expected to generate more than £11 million in EBITDA in 2018.
Each year, companies consume more than 19 billion liters of fuel to keep their
fleets on the road in the United Kingdom, making the country one of the main
markets in Europe, along with France and Germany. The transaction marks a major
new milestone for Edenred, rounding out the Group's Europe-wide footprint in
fleet and mobility solutions.
The acquisition of 80% of the TRFC group's share capital from Rontec and the
Bayford group(2) will represent an outlay of around £95 million and will be
accretive to EBIT and net profit, Group share from 2019. The transaction is
forecast for completion by early 2019, subject to the approval of the UK
competition authority.
"We are delighted about this transaction, which will enable Edenred to continue
expanding in the field of fleet and mobility solutions by directly giving us
pride of place in one of Europe's largest markets. The acquisition of The Right
Fuelcard Company, with its widely recognized expertise and solid market
positioning, will open up great opportunities for growth and profitability,"
said Antoine Dumurgier, Chief Operating Officer, Fleet & Mobility Solutions at
Edenred.
"We are very pleased to join Edenred, a fast-growing global group that has
rapidly risen to become a front-ranking player in the fleet and mobility
sector. Coupled with the know-how of our teams, Edenred's leadership in terms
of innovation and technology will help accelerate
(1) In Europe, the United Kingdom is the largest fuel cards market; it is the
third largest market in liters of fuel spent by companies.
(2) Following the transaction, Rontec and the Bayford group, specialists in the
service station management and fuel distribution industries in the United
Kingdom, will each hold 10% of the TRFC group's share capital.
TRFC's growth in the UK market," said Adam Walsh, Managing Director of The
Right Fuel Card Company.
Edenred is the world leader in transactional solutions for companies, employees
and merchants, with business volume of more than EUR26 billion generated in
2017, of which 78% through digital formats. Whether delivered via mobile,
online platform, card or paper voucher, all of these solutions mean increased
purchasing power for employees, optimized expense management for companies and
additional business for partner merchants.
Edenred's offer is built around three business lines:
* Employee benefits (Ticket Restaurant(r), Ticket Alimentación, Ticket Plus,
Nutrisavings, etc.)
* Fleet and mobility solutions (Ticket Log, Ticket Car, UTA, Empresarial, etc.)
* Complementary solutions, including corporate payments (Edenred Corporate
Payment), incentives and rewards (Ticket Compliments, Ticket Kadéos) and
public social programs.
The Group brings together a unique network of 44 million employees, 770,000
companies and public institutions, and 1.5 million merchants.
Listed on the Euronext Paris stock exchange and part of the CAC Next 20 index,
Edenred operates in 45 countries, with close to 8,000 employees.
Follow Edenred on Twitter: www.twitter.com/Edenred
The logos and other trademarks mentioned and featured in this press release are
registered trademarks of Edenred S.A., its subsidiaries or third parties. They
may not be used for commercial purposes without prior written consent from
their owners.
CONTACTS
Edenred Media Relations
Anne-Sophie Sibout
+33 (0)1 74 31 86 11
anne-sophie.sibout@edenred.com
Anne-Sophie Sergent
+33 (0)1 74 31 86 27
anne-sophie.sergent@edenred.com
Edenred Investor Relations
Solène Zammito
+33 (0)1 74 31 88 68
solene.zammito@edenred.com
Loïc Da Silva
+33 (0)1 74 31 87 09
loic.dasilva@edenred.com
www.edenred.com