Alimentation Couche-Tard Inc., a company based in Laval, Quebec, known for its Couche-Tard and Circle K stores, 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 takeover involves a bid exceeding $12 billion for a controlling stake in Zabka, valuing the offer at 32 Polish zloty per share, equivalent to approximately $11.90 Canadian dollars. If successful, this deal would represent Couche-Tard’s largest acquisition to date, aligning with its strategic goal of significant expansion.
Zabka, named after the Polish word for frog, operates over 13,000 convenience stores in Poland and Romania, while Alimentation Couche-Tard manages 17,300 locations across 27 countries, including nearly 400 stores in Poland. Both companies share similarities in their product offerings, focusing on a wide range of beverages, snacks, and expanding into hot food options.
Unlike Zabka, which emphasizes quick-serve meals and autonomous locations, Couche-Tard’s strengths lie in beverages and fuel sales, with approximately 13,200 locations featuring gas stations. Couche-Tard’s CEO, Alex Miller, highlighted the complementary nature of the two businesses and emphasized the shared goal of enhancing customer service.
The deal, expected to yield around $250 million in cost savings within three years of completion, had been a longstanding interest for Couche-Tard’s leadership. Following previous acquisition attempts, including a bid for Carrefour SA and efforts to acquire Seven & i Holdings, the parent company of 7-Eleven, Alimentation Couche-Tard turned its attention to Zabka.
The agreement has garnered support from Zabka’s executives, major investors, and private equity firms, with unanimous backing for the transaction. While regulatory approvals are pending, the deal is projected to close by December, contingent on shareholder acceptance. Depending on the response, Couche-Tard may acquire a substantial portion of Zabka’s shares, with potential plans for integration or continued public listing.
Analysts view the acquisition as a strategic move that aligns with Couche-Tard’s growth objectives, praising the approach as both bold and calculated. Irene Nattel, an analyst at RBC Capital Markets, sees the deal as a sensible fit that could significantly advance Couche-Tard’s long-term expansion plans.