Alimentation Couche-Tard Inc., based in Laval, Quebec, has set its sights on acquiring Polish convenience store operator Zabka Group after previous unsuccessful attempts to purchase a French grocer and a major global convenience store chain.
The proposed takeover involves Couche-Tard offering more than $12 billion for a controlling stake in Zabka, valuing each share at 32 Polish zloty, approximately $11.90 Canadian dollars. If successful, this deal would mark Couche-Tard’s largest acquisition to date, aligning with its strategic goal of significantly expanding its business footprint.
Zabka, known for its network of over 13,000 convenience stores in Poland and Romania, shares commonalities with Couche-Tard in terms of product offerings, including a wide range of beverages, snacks, and a focus on hot food items. However, Zabka does not provide fuel services like Couche-Tard, which boasts 17,300 stores across 27 countries, including nearly 400 locations in Poland.
Couche-Tard’s CEO, Alex Miller, emphasized that the potential acquisition is about leveraging synergies and shared customer-centric values rather than one company instructing the other. Miller anticipates realizing approximately $250 million in cost savings within three years of completing the transaction.
The decision to pursue Zabka was influenced by founder Alain Bouchard’s recommendation, leading to formal discussions and the eventual announcement of the takeover bid. Zabka’s incoming CEO, Tomasz Blicharski, expressed openness to Couche-Tard’s approach, highlighting the alignment in customer-focused strategies between the two companies.
The deal has garnered support from Zabka’s executive management and key investors, with a unanimous agreement from shareholders holding a majority stake in the company. Regulatory approvals are pending, with the transaction expected to be finalized by December. The outcome will determine whether Zabka will be fully integrated into Couche-Tard or continue operating as a publicly traded entity on the Warsaw Stock Exchange.
RBC Capital Markets analyst Irene Nattel commended the strategic vision outlined by Miller, noting that the acquisition, if successful, would significantly advance Couche-Tard’s long-term growth objectives. Despite regulatory considerations, the proposed deal appears promising in terms of strategic and financial alignment for both companies.
