Alimentation Couche-Tard Inc., headquartered in Laval, Quebec, has set its sights on acquiring Zabka Group, a Polish convenience store operator, after previously unsuccessful attempts to purchase a French grocer and a major global convenience store chain. The proposed deal involves Couche-Tard making a bid exceeding $12 billion for a controlling stake in Zabka, valuing each share at 32 Polish zloty, equivalent to approximately $11.90 Canadian dollars.
If successful, this takeover would mark the largest acquisition in Couche-Tard’s history, aligning with its strategic goal of expanding its business empire significantly. Zabka, named after the Polish word for frog, operates more than 13,000 convenience stores in Poland and Romania, while Couche-Tard boasts a network of 17,300 stores across 27 countries, including nearly 400 in Poland.
Both companies share similarities in their product offerings, with a focus on beverages, snacks, and hot food items. While Zabka emphasizes quick-serve meals and some autonomous locations, Couche-Tard stands out with its emphasis on beverages and fuel, operating approximately 13,200 stores with gas stations.
Couche-Tard’s CEO, Alex Miller, emphasized the complementary strengths and shared customer-centric vision driving this proposed transaction, anticipating around $250 million in cost savings within three years of completion. The decision to pursue Zabka has been on Couche-Tard’s radar for over a decade, with a renewed interest following a suggestion from the company’s founder, Alain Bouchard, who redirected the focus back to Zabka.
Zabka’s incoming CEO, Tomasz Blicharski, expressed openness to Couche-Tard’s approach, citing a mutual dedication to customer service and operational excellence as key drivers for considering the deal. Major stakeholders in Zabka, holding a combined 57% ownership stake, including private equity firms CVC Capital Partners and Partners Group, have unanimously backed the acquisition.
The transaction remains subject to regulatory approvals, with an expected completion by December. The final outcome will depend on shareholder acceptance of the offer, with Couche-Tard potentially acquiring a majority stake in Zabka. The integration of Zabka into Couche-Tard’s operations is under consideration, with a possibility of Zabka maintaining its public listing on the Warsaw Stock Exchange post-acquisition.
Analysts view Couche-Tard’s strategic move positively, noting its potential to drive long-term growth and enhance the company’s market position. Irene Nattel, an analyst at RBC Capital Markets, described the acquisition plan as both bold and well-considered, highlighting its alignment with Couche-Tard’s growth objectives and overall strategic fit.