Alimentation Couche-Tard Inc., based in Laval, Quebec, has set its sights on a new acquisition after previous failed attempts to purchase a French grocer and a major global convenience store chain. The company revealed its intention to acquire Zabka Group, a Polish convenience store operator, with a proposed offer exceeding $12 billion for a controlling interest. This bid values Zabka at 32 Polish zloty per share, approximately $11.90 Canadian dollars.
If successful, this deal would mark Couche-Tard’s largest acquisition to date, aligning with its strategic objective of significantly expanding its business empire. Zabka, renowned for its extensive network of over 13,000 convenience stores in Poland and Romania, presents an attractive opportunity for Couche-Tard, which operates 17,300 stores across 27 countries, with nearly 400 stores in Poland.
Both companies share similarities in their product offerings, focusing on a wide range of beverages, snacks, and hot food items. While Zabka’s stores cater to quick-serve meals, some locations are fully autonomous, unlike Couche-Tard’s emphasis on beverages and fuel, with approximately 13,200 locations featuring gas stations.
Couche-Tard’s CEO, Alex Miller, emphasized the complementary strengths and shared customer-centric approach of the two companies. He anticipates achieving around $250 million in cost savings within three years of completing the transaction. The decision to pursue Zabka has been in the works for over 15 years, with Couche-Tard’s executives, including founder Alain Bouchard, expressing long-standing interest in the company.
The transaction, subject to regulatory approvals, is expected to be finalized by December. The level of Zabka shares acquired by Couche-Tard will depend on shareholder responses to the offer. If Couche-Tard secures a minimum of 95% of Zabka’s total voting rights, it plans to delist the company from the Warsaw Stock Exchange. The integration of Zabka into Couche-Tard’s operations remains under consideration, with Miller indicating that further discussions will shape the future direction.
Financial analysts view this move as a strategic advancement for Couche-Tard, offering substantial growth opportunities. Irene Nattel from RBC Capital Markets described the plan as both bold and measured, highlighting its potential to drive long-term growth for the company.