Alimentation Couche-Tard Inc., based in Laval, Quebec, 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 offer made by Couche-Tard for a controlling stake in Zabka is valued at over $12 billion, pricing Zabka at 32 Polish zloty per share. If successful, this acquisition would be Couche-Tard’s largest ever and would align with its goal of expanding its business significantly.
Zabka, known for its more than 13,000 convenience stores in Poland and Romania, is a target that complements Couche-Tard’s existing network of 17,300 stores across 27 countries. Both companies share similarities in their product offerings, with a focus on beverages, snacks, and hot foods. Notably, Zabka’s emphasis on quick-serve meals and autonomous store operations contrasts with Couche-Tard’s strong presence in beverages and fuel, as the majority of its locations include gas stations.
The proposed acquisition is expected to result in significant cost savings of approximately $250 million US within three years of closing. Couche-Tard’s interest in Zabka dates back over a decade, with the company’s executives, including founder Alain Bouchard, closely monitoring Zabka’s growth. Following failed acquisition attempts in the past, including bids for other prominent companies like Carrefour SA and Seven & i Holdings, Couche-Tard’s move towards Zabka represents a strategic shift in its expansion strategy.
The deal is supported by Zabka’s key stakeholders, with 57% of shares already backing the acquisition, including private equity firms CVC Capital Partners and Partners Group. Regulatory approvals are pending, with an expected completion date by December. The integration of Zabka into Couche-Tard’s operations may lead to the delisting of Zabka from the Warsaw Stock Exchange, where it has been trading for two years. The transaction’s success could significantly advance Couche-Tard’s growth objectives, according to RBC Capital Markets analyst Irene Nattel, who views the move as both bold and strategic.