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 global convenience store giant. Couche-Tard has made an offer exceeding $12 billion for a majority stake in Zabka, valuing each share at about 32 Polish zloty or approximately $11.90 Canadian dollars.
If the deal goes through, it would mark Couche-Tard’s largest acquisition to date, aligning with its strategy to significantly expand its business empire. Zabka, which operates over 13,000 convenience stores in Poland and Romania, is known for its wide range of products, including beverages and snacks, and its recent focus on hot food offerings.
In comparison, Couche-Tard operates 17,300 stores in 27 countries, with nearly 400 locations in Poland. Both companies share similarities in their product offerings, with Zabka emphasizing quick-serve meals in one-fifth of its transactions, while Couche-Tard shines in beverages and fuel sales, operating around 13,200 stores with gas stations.
Couche-Tard’s CEO, Alex Miller, highlighted the complementary strengths of the two companies during discussions about the proposed acquisition, emphasizing a shared commitment to customer service. The potential deal is expected to generate approximately $250 million in cost savings within three years of completion.
The idea of acquiring Zabka had been on Couche-Tard’s radar for over a decade, with founder Alain Bouchard suggesting a closer look at the company during a recent vacation. The proposed transaction has garnered support from Zabka’s executive managers and major shareholders, including private equity firms CVC Capital Partners and Partners Group.
The acquisition is pending regulatory approvals and is anticipated to be finalized by December. The extent of Couche-Tard’s ownership of Zabka will be determined by shareholder acceptance. If Couche-Tard acquires at least 95% of Zabka’s total voting rights, it may delist the company from the Warsaw Stock Exchange. The integration of Zabka into Couche-Tard’s operations is under consideration, with a focus on maximizing synergies and long-term growth opportunities.
Market analysts view the acquisition plan as a strategic move that aligns with Couche-Tard’s growth objectives, pending further clarity on regulatory processes and financial implications.