Alimentation Couche-Tard Inc., headquartered in Laval, Quebec, has set its sights on Polish convenience store operator Zabka Group after unsuccessful attempts to acquire a French grocer and a major global convenience store chain. The company has made an offer exceeding $12 billion for a controlling interest 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, aligning with its strategic goal of significantly expanding its business empire. Zabka, named after the Polish word for frog, operates over 13,000 convenience stores in Poland and Romania, while Couche-Tard boasts 17,300 locations across 27 countries, including nearly 400 stores in Poland.
Both companies share similarities in their product offerings, with a wide range of beverages, snacks, and a focus on hot food items. Zabka sees one in five transactions involving quick-serve meals and operates some fully autonomous stores, contrasting Couche-Tard’s emphasis on beverages and fuel, with around 13,200 locations featuring gas stations.
Couche-Tard CEO, Alex Miller, emphasized the complementary strengths of the two companies and their shared commitment to customer service during discussions about the proposed acquisition. The deal is expected to yield approximately $250 million US in cost savings within three years of completion.
The interest in Zabka has been longstanding, with Couche-Tard executives, including founder Alain Bouchard, considering the company for at least 15 years. Following failed attempts at other acquisitions, including a bid for French grocery chain Carrefour SA and negotiations with Seven & i Holdings, Couche-Tard revisited the possibility of acquiring Zabka, culminating in the recent offer.
Zabka’s incoming CEO, Tomasz Blicharski, praised Couche-Tard for its receptiveness and shared focus on customer-centric operations during discussions about the deal. The transaction, supported by Zabka’s executive management and key investors, is subject to regulatory approvals and is anticipated to be finalized by December.
The ultimate integration of Zabka into Couche-Tard’s operations remains under consideration, with the possibility of delisting Zabka from the Warsaw Stock Exchange if Couche-Tard acquires at least 95% of its voting rights. Analysts view the move as a strategic advancement that could significantly benefit Couche-Tard’s long-term growth objectives.