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 international convenience store chain. Couche-Tard has made a bid exceeding $12 billion for a controlling interest in Zabka, valuing each share at 32 Polish zloty, equivalent to around $11.90 Canadian dollars.
If the deal goes through, it would mark Couche-Tard’s largest acquisition to date, fulfilling its objective of significantly expanding its business empire. Zabka, known for its network of over 13,000 convenience stores in Poland and Romania, has caught the attention of Couche-Tard, which operates 17,300 stores across 27 countries, including nearly 400 locations in Poland.
Both companies share similarities in their product offerings, with a wide range of beverages and snacks, and a recent focus on expanding their hot food selections. Zabka has a significant presence in Poland and Romania, while Couche-Tard emphasizes beverages and fuel, operating over 13,200 locations with gas stations.
Couche-Tard’s CEO, Alex Miller, highlighted the complementary strengths of the two companies, emphasizing the shared commitment to customer service. The proposed transaction, expected to result in approximately $250 million in cost savings within three years of completion, has been a long-standing ambition for Couche-Tard, with executives expressing interest in Zabka for over a decade.
The deal, subject to regulatory approvals, is anticipated to be finalized by December. The extent of Couche-Tard’s ownership in Zabka will depend on shareholder response to the offer. Should Couche-Tard secure at least 95% of Zabka’s voting rights, it will move to delist the company from the Warsaw Stock Exchange.
Analysts view the acquisition plan positively, seeing it as a strategic move that aligns with Couche-Tard’s growth objectives. Irene Nattel, an analyst at RBC Capital Markets, described the strategy as both bold and calculated, with the potential to significantly advance Couche-Tard’s long-term goals.