Alimentation Couche-Tard Inc., headquartered in Laval, Quebec, has set its sights on acquiring the Polish convenience store operator Zabka Group after unsuccessful attempts to purchase a French grocer and a major global convenience store chain. The offer, valued at over $12 billion, is for a controlling stake in Zabka, pricing each share at 32 Polish zloty or approximately $11.90 Canadian dollars.
This potential acquisition, if successful, would mark the largest takeover in Couche-Tard’s history, 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 stores across 27 countries, with almost 400 in Poland.
Both companies share similarities in their product offerings, emphasizing a wide selection of beverages, snacks, and a growing focus on hot food options. Zabka excels in quick-serve meals, with one in five transactions including food purchases, and some stores operating autonomously. In contrast, Couche-Tard’s strengths lie in beverages and fuel sales, with approximately 13,200 locations featuring gas stations, a service Zabka does not provide.
Couche-Tard CEO Alex Miller emphasized the synergies between the companies during discussions on the proposed deal, highlighting the mutual commitment to enhancing customer service. The potential merger is expected to generate around $250 million US in cost savings within three years of completion.
The interest in Zabka has been longstanding, with Couche-Tard executives, including founder Alain Bouchard, considering the company for at least 15 years. Despite previous pursuits of other acquisitions, the focus eventually returned to Zabka, culminating in the recent offer announcement.
The transaction is subject to regulatory approvals and is projected to be finalized by December. The level of ownership Couche-Tard will secure in Zabka depends on shareholder acceptance of the offer. Should Couche-Tard acquire at least 95% of Zabka’s voting rights, it may delist the company from the Warsaw Stock Exchange, where it commenced trading two years ago.
The potential integration of Zabka into Couche-Tard’s operations or its continuity as a publicly traded entity in Poland remains under consideration. Analysts view the proposed acquisition as a strategic move that aligns with Couche-Tard’s growth objectives, providing opportunities for expansion and operational synergies, pending successful execution.