Alimentation Couche-Tard Inc., based in Laval, Quebec, has set its sights on acquiring Zabka Group, a Polish convenience store operator, following unsuccessful attempts to purchase a French grocer and a major global convenience store chain. The proposed deal values Zabka at over $12 billion, offering 32 Polish zloty (approximately $11.90 Canadian dollars) per share for a controlling stake. If successful, this acquisition would mark Couche-Tard’s largest ever and align with its goal of expanding its business significantly.
Zabka, named after the Polish word for frog, operates over 13,000 convenience stores in Poland and Romania, while Couche-Tard, recognized for its owl mascot, boasts 17,300 stores across 27 countries, including nearly 400 in Poland. Both companies share similarities in their product offerings, with a focus on beverages, snacks, and hot food items.
While Zabka excels in quick-serve meals and autonomous store operations, Couche-Tard’s strength lies in beverages and fuel sales, with approximately 13,200 locations featuring gas stations. Couche-Tard’s CEO, Alex Miller, emphasized the strategic fit between the two companies, highlighting the potential for significant cost savings of around $250 million within three years of completing the transaction.
The acquisition of Zabka has been a long-standing interest for Couche-Tard, with the company’s executives, including founder Alain Bouchard, considering the move for at least 15 years. Previous attempts to acquire other companies, such as French grocery chain Carrefour SA and Seven & i Holdings, the parent company of 7-Eleven, did not materialize due to various reasons.
The deal with Zabka, supported by key stakeholders, is pending regulatory approvals and is expected to be finalized by December. The ultimate integration of Zabka into Couche-Tard’s operations will depend on shareholder responses to the offer. Should Couche-Tard secure at least 95% of Zabka’s voting rights, it could potentially delist the company from the Warsaw Stock Exchange.
RBC Capital Markets analyst Irene Nattel commended the proposed acquisition as a strategic move that aligns with Couche-Tard’s growth objectives. She noted that while uncertainties exist regarding the regulatory process and financial impacts, the potential benefits of the deal appear promising.