Edenred® and VM Finance Group® announce intention to form joint venture in Bulgaria

Edenred, the world leader in prepaid corporate services, and VM Finance Group AD (“VMFG”), a major economic Bulgarian conglomerate, announced today their intention to create a 50/50 joint venture to become the leader in the Bulgarian Employee Benefits1 and Incentive and Rewards2 markets. The venture, which will continue to operate under the name Edenred Bulgaria, will be the result of combining VFMG’s Menew® business with Edenred’s business in Bulgaria. It will be well-positioned, thanks to key complementary assets, for future rapid growth.

VM Finance Group AD will contribute its Menew business in exchange for 50% of the shares of Edenred Bulgaria AD. The management of the joint venture will combine the best practices of both Edenred with its global industry knowhow and the strong position of VMFG in the Bulgarian market.

This strategic combination is taking place in a challenging but promising market. Once completed, the transaction will combine the client base and know how of the parties to create an industry leader. The parties’ client portfolios are complementary from both a geographical and sectoral point of view. The combination of Edenred and Menew’s sales forces will further enhance Edenred Bulgaria’s regional presence and proximity to customers.

“The JV with a global leader like Edenred is a clear recognition of our success in the food voucher market. For VMFG this is the second JV with an international leader after the successful partnership with Gebr. Heinemann. We are very happy to enter into this alliance with Edenred,” said Vassil Mirtchev, VMFG’s Chairman. “This transaction will position Edenred Bulgaria as the market leader and open up new growth opportunities.”

“Finding a reliable and recognized Bulgarian partner will help us to better unlock the potential of the market. I am especially optimistic about the relationship we are setting up, which will help integrate Edenred better in the Bulgarian business landscape” said Arnaud Erulin, Edenred’s Chief Operating Officer, Central Europe and Scandinavia.

The transaction remains subject to certain conditions, including the review of the Bulgarian Commission for Protection of Competition.