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 offer for a controlling stake in Zabka is valued at over $12 billion, pricing each share at 32 Polish zloty or around $11.90 Canadian dollars.
If the deal goes through, it will mark Couche-Tard’s largest acquisition to date and align with its strategic goal of expanding its business significantly. Zabka, derived from the Polish word for frog, operates over 13,000 convenience stores in Poland and Romania, while Alimentation Couche-Tard boasts a network of 17,300 stores across 27 countries, including nearly 400 outlets in Poland.
Both companies share similarities in their product offerings, with a wide range of beverages, snacks, and a growing focus on hot food. Zabka stands out for its quick-serve meals, with one in every five transactions including a meal, and some stores being fully autonomous. In contrast, Couche-Tard shines in beverages and fuel sales, with approximately 13,200 locations featuring gas stations, a service Zabka does not provide.
According to Couche-Tard CEO Alex Miller, the proposed merger aims to leverage each company’s strengths and shared commitment to enhancing customer service. The deal is expected to yield around $250 million US in cost savings within three years of completion. The interest in Zabka has been longstanding, with Couche-Tard executives, led by founder Alain Bouchard, monitoring the company for over 15 years before making the recent move.
The transaction is pending regulatory approvals and is anticipated to be finalized by December. The level of ownership Couche-Tard will secure in Zabka depends on shareholder acceptance of the offer. If Couche-Tard attains at least 95% of Zabka’s voting rights, it plans to delist Zabka from the Warsaw Stock Exchange, where it went public two years ago. The integration of Zabka into Couche-Tard’s operations or maintaining it as a standalone entity post-acquisition is still under consideration.
RBC Capital Markets analyst Irene Nattel views the deal as a bold yet calculated move by Miller, positioning Couche-Tard for substantial long-term growth. While uncertainties remain regarding regulatory processes and financial impacts, the strategic alignment between the two companies appears favorable.
