Alimentation Couche-Tard Inc., based in Laval, Quebec, has set its sights on acquiring Zabka Group, a Polish convenience store operator, after previous failed attempts at purchasing a French grocer and a global convenience store chain. Couche-Tard has proposed a buyout valued at over $12 billion for a controlling interest in Zabka, pricing each share at 32 Polish zloty or approximately $11.90 Canadian dollars.
If the deal goes through, it would mark Couche-Tard’s largest acquisition to date, aligning with its strategic goal of expanding its business significantly. Zabka, named after the Polish word for frog, operates more than 13,000 convenience stores in Poland and Romania, while Couche-Tard boasts 17,300 stores across 27 countries, with nearly 400 of them located in Poland.
Both companies share similarities in their product offerings, with a strong focus on beverages and snacks, and a recent expansion into hot food options. Zabka stands out for its quick-serve meals, with one in five transactions including food purchases, and some of its stores operating autonomously. In contrast, Couche-Tard’s emphasis lies on beverages and fuel, with around 13,200 locations featuring gas stations, a service Zabka does not provide.
Couche-Tard’s CEO, Alex Miller, highlighted the complementary strengths of the two companies and their shared commitment to enhancing customer service. The proposed acquisition aims to generate approximately $250 million in cost savings within three years of completion. The interest in Zabka has been long-standing, with Couche-Tard executives, including founder Alain Bouchard, considering the company for over 15 years.
The deal is subject to regulatory approval and is anticipated to be finalized by December. The extent of Couche-Tard’s ownership in Zabka will hinge on shareholder acceptance of the offer. Should Couche-Tard secure at least 95% of Zabka’s voting rights, it plans to delist the company from the Warsaw Stock Exchange. The integration of Zabka into Couche-Tard’s operations or its continuation as a public entity in Poland remains under consideration.
Market analysts view the acquisition plan as a strategic move that aligns with Couche-Tard’s growth objectives. Irene Nattel, an analyst at RBC Capital Markets, described the proposal as both bold and measured, suggesting that if successful, it could significantly advance Couche-Tard’s long-term business strategy.
Overall, the proposed takeover of Zabka represents a pivotal moment for Couche-Tard as it seeks to strengthen its market presence and achieve sustainable growth in the retail sector.
