Alimentation Couche-Tard Inc., based in Laval, Quebec, has set its sights on acquiring Zabka Group, a prominent 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 stake in Zabka, with a tender offer pricing Zabka at 32 Polish zloty per share.
If the deal goes through successfully, it would mark Couche-Tard’s largest acquisition to date, aligning with its objective of significantly expanding its business empire. Zabka, named after the Polish word for frog, boasts a network of more than 13,000 convenience stores spanning Poland and Romania.
With 17,300 locations across 27 countries, Alimentation Couche-Tard features its signature owl mascot and includes 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 emphasizes quick-serve meals and operates some fully autonomous stores, Couche-Tard’s strengths lie in beverages and fuel, with approximately 13,200 locations equipped with gas stations. Couche-Tard’s CEO, Alex Miller, emphasized the synergies between the two companies and their shared commitment to enhancing customer service.
The proposed transaction, anticipated to yield around $250 million in cost savings within three years of completion, has been a long time in the making. Couche-Tard’s interest in Zabka dates back at least 15 years, with occasional diversions to other prospects along the way.
The deal with Zabka marks a strategic move for Couche-Tard, following previous failed acquisition attempts, including a bid for Carrefour SA and efforts to purchase Seven & i Holdings, the parent company of 7-Eleven. Couche-Tard’s pursuit of Zabka was reignited by founder Alain Bouchard, leading to the current offer.
Zabka’s incoming CEO, Tomasz Blicharski, expressed openness to Couche-Tard’s proposal, emphasizing the alignment in customer-centric values between the two organizations. The deal has garnered unanimous support from Zabka’s major investors and is pending regulatory approvals, expected to be finalized by December.
The integration of Zabka into Couche-Tard remains under consideration, with potential options including full integration or maintaining Zabka as a publicly traded entity on the Polish stock exchange. Analysts view the acquisition plan as a strategic move that could advance Couche-Tard’s growth objectives significantly, pending successful implementation.