Alimentation Couche-Tard Inc., based in Laval, Quebec, has set its sights on acquiring Zabka Group, a Polish convenience store operator, following unsuccessful attempts to purchase a French grocer and a major global convenience store chain. The proposed deal involves a bid exceeding $12 billion for a controlling interest in Zabka, valuing each share at 32 Polish zloty or approximately $11.90 Canadian dollars.
If the acquisition is successful, it will mark Couche-Tard’s largest takeover to date, aligning with its strategic goal of expanding its business significantly. Zabka, known for its more than 13,000 convenience stores in Poland and Romania, complements Couche-Tard’s 17,300 locations across 27 countries, including nearly 400 stores in Poland.
Both companies share similarities in their offerings, with a wide range of beverages, snacks, and a growing focus on hot food items. Zabka stands out with one in five transactions involving quick-serve meals and some fully autonomous locations, while Couche-Tard emphasizes beverages and fuel, operating over 13,200 locations with gas stations, unlike Zabka.
The proposed transaction aims to leverage the strengths of both companies to enhance customer service. Couche-Tard’s CEO, Alex Miller, anticipates achieving approximately $250 million in cost savings within three years of completing the deal. The acquisition of Zabka has been a long-term consideration for Couche-Tard, with previous attempts to acquire other entities like Carrefour SA, TotalEnergies SE gas stations, and Seven & i Holdings.
The decision to pursue Zabka was reignited by Couche-Tard’s founder, Alain Bouchard, prompting a deeper evaluation that culminated in the current offer. Zabka’s incoming CEO, Tomasz Blicharski, expressed openness to the deal, highlighting the shared customer-centric focus between the two companies.
Major stakeholders, including private equity firms CVC Capital Partners and Partners Group, owning 57% of Zabka’s shares, have unanimously endorsed the acquisition. The deal, subject to regulatory approval, is expected to be finalized by December. Couche-Tard may potentially acquire all Zabka shares, leading to its delisting from the Warsaw Stock Exchange.
RBC Capital Markets analyst Irene Nattel praised the acquisition strategy as both bold and calculated, positioning Couche-Tard for substantial long-term growth. The planned integration of Zabka into Couche-Tard is seen as a strategic move that could yield significant benefits for the company’s future expansion and development.