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. Couche-Tard has proposed a takeover valued at over $12 billion for a controlling interest in Zabka, with the offer pricing Zabka at 32 Polish zloty (approximately $11.90 Cdn) per share.
The successful completion of this deal would mark Couche-Tard’s largest acquisition to date, aligning with its strategic goal of significantly expanding its business reach. Zabka, named after the Polish word for frog, operates more than 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 focus on a wide range of beverages, snacks, and hot food items. Zabka emphasizes quick-serve meals, and some of its stores are fully autonomous, while Couche-Tard’s locations prominently feature beverages and fuel, with approximately 13,200 stores equipped with gas stations.
During discussions about the proposed transaction, Couche-Tard CEO Alex Miller highlighted the complementary strengths and shared customer-centric vision of the two companies. He anticipates uncovering around $250 million US in cost savings within three years of finalizing the deal. The interest in Zabka has been a longstanding one for Couche-Tard, with executives considering the company for over 15 years, although other opportunities had taken precedence at times.
The transaction is still subject to regulatory approvals but is anticipated to be completed by December. The level of Zabka shares acquired by Couche-Tard will depend on shareholder acceptance of the offer. If Couche-Tard secures at least 95% of the total voting rights in Zabka, it will move to delist the company from the Warsaw Stock Exchange. The integration of Zabka into Couche-Tard’s operations is under consideration, with decisions expected to be made before the closing date.
Analysts view the proposed acquisition as a bold yet measured move by Couche-Tard, positioning the company for significant long-term growth. Irene Nattel, an analyst at RBC Capital Markets, sees the strategic and financial alignment between the two companies as sensible and potentially beneficial for Couche-Tard’s future expansion plans.