Alimentation Couche-Tard Inc., based in Laval, Quebec, has set its sights on acquiring Zabka Group, a Polish convenience store operator, after previous unsuccessful attempts to purchase a French grocer and a major global convenience store chain. The proposed deal involves a bid exceeding $12 billion for a majority stake in Zabka, valuing each share at 32 Polish zloty (approximately $11.90 Canadian dollars).
If finalized, this acquisition would be the largest ever for Couche-Tard and would align with its strategic objective of expanding its retail footprint significantly. Zabka, with over 13,000 stores in Poland and Romania, and Couche-Tard, operating 17,300 stores across 27 countries (including nearly 400 in Poland), share similarities in their offerings of a wide range of beverages, snacks, and hot food items.
While Zabka emphasizes quick-serve meals and autonomous store operations, Couche-Tard focuses on beverages and fuel, with a majority of its sites featuring gas stations, a service Zabka does not provide. Couche-Tard’s CEO, Alex Miller, highlighted the complementary strengths of both companies, emphasizing the shared goal of enhancing customer service.
The proposed transaction, anticipated to yield approximately $250 million USD in cost savings within three years of completion, is the culmination of a long-standing interest in Zabka by Couche-Tard’s executives, including founder Alain Bouchard. Despite past pursuits of other acquisitions, including the failed bid for 7-Eleven’s parent company, Couche-Tard’s persistence in pursuing Zabka underscores its commitment to growth and expansion.
The deal, supported by Zabka’s management and major investors, is subject to regulatory approvals and is expected to close by December. Depending on shareholder response, Couche-Tard may acquire a majority stake in Zabka, potentially leading to the delisting of Zabka from the Warsaw Stock Exchange. The integration of Zabka into Couche-Tard’s operations or its continued operation as a public entity in Poland remains under consideration.
Market analysts view the acquisition as a bold yet strategic move by Couche-Tard, with the potential to significantly advance its long-term growth objectives. Irene Nattel, an analyst at RBC Capital Markets, described the deal as sensible and likely to yield positive outcomes for Couche-Tard, pending regulatory processes and financial impacts.