Alimentation Couche-Tard Inc., the Canadian company behind Couche-Tard and Circle K stores based in Laval, Quebec, has set its sights on acquiring Zabka Group, a Polish convenience store operator, after unsuccessful attempts to purchase a French grocer and a major global convenience store chain.
The proposed offer by Couche-Tard for a controlling stake in Zabka values the deal at over $12 billion, with a tender offer price of 32 Polish zloty per share. If successful, this acquisition would be the largest in Couche-Tard’s history and would align with its strategy of expanding its presence significantly.
Zabka, named after the Polish word for frog, operates more than 13,000 convenience stores in Poland and Romania, while Couche-Tard has 17,300 locations across 27 countries, including nearly 400 stores in Poland. Both companies share similarities in their product offerings, with a focus on beverages, snacks, and hot food.
While Zabka emphasizes quick-serve meals and some fully autonomous locations, Couche-Tard highlights beverages and fuel, with the majority of its stores featuring gas stations, a service not offered by Zabka. Couche-Tard’s CEO Alex Miller emphasized the synergies between the two companies and the shared commitment to enhancing customer service.
The deal, which is expected to result in approximately $250 million in cost savings within three years of completion, has been in the works for some time. Couche-Tard’s executives, led by founder Alain Bouchard, had been monitoring Zabka for at least 15 years before making the current bid.
The transaction is subject to regulatory approvals and is anticipated to be finalized by December. Depending on the acceptance rate among Zabka shareholders, Couche-Tard may acquire the majority of Zabka shares, potentially delisting the company from the Warsaw Stock Exchange. The integration of Zabka into Couche-Tard’s operations is still under consideration, with Miller indicating a thorough evaluation process leading up to the deal’s closure.
Analysts view the proposed acquisition as a strategic move that aligns with Couche-Tard’s growth objectives. RBC Capital Markets analyst Irene Nattel described the plan as both “bold” and “measured,” expressing optimism about its potential impact on Couche-Tard’s long-term prospects.