Alimentation Couche-Tard Inc., based in Laval, Quebec, has set its sights on acquiring Zabka Group, a Polish convenience store operator, after 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 majority stake in Zabka, valuing each share at approximately $11.90 Canadian dollars.
If successful, this acquisition would be the largest in Couche-Tard’s history, aligning with its strategic goal of expanding its reach significantly. Zabka, named after the Polish word for frog, operates over 13,000 convenience stores in Poland and Romania, while Couche-Tard, recognized for its owl mascot, boasts 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 expanding into hot food options. Zabka emphasizes quick-serve meals, with one in five transactions involving such items, and some stores operating autonomously. In contrast, Couche-Tard’s strengths lie in beverages and fuel sales, with approximately 13,200 locations featuring gas stations, a service Zabka does not provide.
Couche-Tard’s CEO, Alex Miller, emphasized the complementary nature of the two businesses, highlighting their shared commitment to customer service. The proposed deal is expected to generate around $250 million in cost savings within three years of completion. The acquisition of Zabka has been a consideration for Couche-Tard for over a decade, with previous diversions to other acquisition targets.
Pending regulatory approvals, the transaction is slated to close by December, with the final acquisition of Zabka shares contingent on shareholder acceptance. Should Couche-Tard secure at least 95% of Zabka’s voting rights, it may delist the company from the Warsaw Stock Exchange and integrate it fully or maintain its public status in Poland.
Financial analysts view the move as a strategic advancement for Couche-Tard, with the potential to enhance long-term growth prospects. Irene Nattel, an analyst at RBC Capital Markets, commended the acquisition plan as both bold and measured, foreseeing positive outcomes for Couche-Tard’s expansion strategy.