Alimentation Couche-Tard Inc., headquartered in Laval, Quebec, has set its sights on acquiring Polish convenience store operator Zabka Group after unsuccessful attempts to purchase a French grocer and a major global convenience store chain. The proposed deal values Zabka at over $12 billion for a majority stake, with each share priced at 32 Polish zloty, equivalent to approximately $11.90 Canadian dollars.
If successfully completed, this acquisition would be Couche-Tard’s largest to date, aligning with its strategic goal of expanding its presence 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 locations across 27 countries, including nearly 400 stores in Poland.
Both companies share similarities in their offerings, focusing on a diverse range of beverages, snacks, and an increased emphasis on hot food items. Zabka has a notable presence in quick-serve meals, with some stores operating autonomously, while Couche-Tard’s strength lies in beverages and fuel, with approximately 13,200 locations featuring gas stations.
During discussions about the potential acquisition, Couche-Tard’s CEO, Alex Miller, emphasized the synergies between the two companies and the shared commitment to enhancing customer service. The deal is expected to generate around $250 million in cost savings within three years of completion. This move comes after Couche-Tard’s previous failed attempts to acquire Carrefour SA, TotalEnergies SE’s gas stations, and Seven & i Holdings, the parent company of 7-Eleven.
The decision to pursue Zabka was influenced by founder Alain Bouchard, who redirected attention to the company after years of consideration. Zabka’s incoming CEO, Tomasz Blicharski, expressed openness to the deal, highlighting the alignment in customer-centric approaches between the two organizations.
With support from key stakeholders, including private equity firms CVC Capital Partners and Partners Group, the transaction is pending regulatory approvals and is anticipated to be finalized by December. The ultimate integration of Zabka into Couche-Tard’s operations will depend on shareholder responses to the offer, potentially leading to Zabka’s delisting from the Warsaw Stock Exchange.
RBC Capital Markets analyst Irene Nattel commended the strategic vision outlined by Miller, noting the potential for significant growth and advancement of Couche-Tard’s objectives. The deal is seen as a bold yet calculated move that could drive long-term value for the company and its stakeholders.