Alimentation Couche-Tard Inc., based in Laval, Quebec, has set its sights on acquiring the Polish convenience store operator Zabka Group after previous unsuccessful attempts to purchase a French grocer and a global convenience store chain. The company has made a bid exceeding $12 billion for a majority stake in Zabka, valuing each share at 32 Polish zloty, approximately $11.90 Canadian dollars.
If the deal goes through, it would mark Couche-Tard’s largest acquisition to date, allowing the company to significantly expand its reach. Zabka, named after the Polish word for frog, operates over 13,000 convenience stores in Poland and Romania, while Couche-Tard owns 17,300 stores across 27 countries, with around 400 locations in Poland.
Both companies share similarities in their product offerings, with a focus on beverages, snacks, and hot food. Zabka sees a high percentage of transactions involving quick-serve meals, including fully autonomous store locations, whereas Couche-Tard emphasizes beverages and fuel, with a majority of its stores featuring gas stations.
Couche-Tard’s CEO Alex Miller expressed optimism about the potential synergies between the two companies, highlighting the goal of enhancing customer service. The proposed deal is expected to result in cost savings of approximately $250 million within three years of completion.
The decision to pursue Zabka was influenced by Couche-Tard founder Alain Bouchard, who suggested revisiting the opportunity after years of consideration. Zabka’s incoming CEO, Tomasz Blicharski, emphasized the shared customer-centric approach of both companies as a driving factor behind their mutual interest.
The transaction has garnered support from Zabka’s executive management and major shareholders, with regulatory approvals pending. The deal is anticipated to be finalized by December, with the outcome dependent on shareholder acceptance. Couche-Tard may potentially fully integrate Zabka or maintain it as a publicly traded entity on the Polish stock exchange.
Analysts view the acquisition as a strategic move that aligns with Couche-Tard’s growth objectives. Irene Nattel from RBC Capital Markets commended the plan as bold yet calculated, noting its potential to significantly advance the company’s long-term growth trajectory.