Alimentation Couche-Tard Inc., based in Laval, Quebec, has set its sights on acquiring Zabka Group, a Polish convenience store operator, after previously unsuccessful attempts to purchase a French grocer and a major global convenience store chain. The offer for a controlling stake in Zabka is valued at over $12 billion, pricing each share at 32 Polish zloty, equivalent to approximately $11.90 Canadian dollars.
This potential acquisition represents Couche-Tard’s largest deal to date and aligns with the company’s objective of significantly expanding its reach. Zabka, named after the Polish word for frog, operates more than 13,000 convenience stores in Poland and Romania. In contrast, 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 a wide selection of beverages, snacks, and an increased emphasis on hot food options. Zabka stands out for its quick-serve meals, accounting for one in five transactions, while Couche-Tard shines in beverages and fuel sales, with approximately 13,200 stores featuring gas stations.
Couche-Tard’s CEO, Alex Miller, emphasized that the proposed transaction aims to leverage the complementary strengths of both companies to enhance customer service. The deal is projected to yield around $250 million in cost savings within three years of completion. The decision to target Zabka was influenced by founder Alain Bouchard, who redirected the company’s attention back to Zabka after previous pursuits.
Zabka’s incoming CEO, Tomasz Blicharski, highlighted the shared customer-centric approach between the two companies as a key factor in their receptivity to Couche-Tard’s offer. Current Zabka executives and major shareholders, representing 57% of the company’s shares, including private equity firms CVC Capital Partners and Partners Group, have shown unanimous support for the acquisition.
While regulatory approvals are pending, the transaction is anticipated to finalize by December. The extent of Couche-Tard’s ownership in Zabka will be dependent on shareholder response to the offer. If Couche-Tard secures at least 95% of Zabka’s voting rights, it may delist the company from the Warsaw Stock Exchange, where it went public two years ago. The integration of Zabka into Couche-Tard’s operations or its maintenance as a public entity in Poland remains under consideration.
Analysts view the acquisition as a strategic move that aligns with Couche-Tard’s long-term growth strategy, with potential regulatory challenges and financial impacts to be addressed in due course.