Alimentation Couche-Tard Inc., based in Laval, Quebec, has shifted its focus to a new acquisition target after unsuccessful attempts to purchase a French grocer and a major global convenience store chain. The company has set its sights on Zabka Group, a Polish convenience store operator.
Couche-Tard has proposed a takeover valued at over $12 billion for a controlling interest in Zabka, offering 32 Polish zloty per share. This move represents Couche-Tard’s largest acquisition to date and aligns with its strategy to expand its reach significantly.
Zabka, named after the Polish word for frog, operates more than 13,000 convenience stores in Poland and Romania. In comparison, Couche-Tard boasts 17,300 locations across 27 countries, with nearly 400 stores in Poland.
Both companies share similarities in their product offerings, including a wide selection of beverages, snacks, and a growing focus on hot food items. Zabka stands out with one in every five transactions involving quick-serve meals and some fully autonomous locations, while Couche-Tard excels in beverages and fuel sales, with approximately 13,200 locations featuring gas stations.
Couche-Tard’s CEO, Alex Miller, highlighted the complementary strengths of the two companies and emphasized the shared goal of enhancing customer service. The deal is projected to generate around $250 million in cost savings within three years of completion.
The acquisition of Zabka has been on Couche-Tard’s radar for over a decade, with the company’s founder, Alain Bouchard, playing a pivotal role in revisiting the opportunity. The proposed transaction has garnered support from Zabka’s top executives and major investors, including private equity firms CVC Capital Partners and Partners Group.
The deal is pending regulatory approval and is anticipated to be finalized by December. Couche-Tard aims to secure at least 95% of Zabka’s voting rights, potentially leading to the delisting of Zabka from the Warsaw Stock Exchange. The integration of Zabka into Couche-Tard’s operations is under consideration, with further strategic planning expected before the deal’s closure.
Financial analysts view the acquisition as a strategic move that aligns with Couche-Tard’s long-term growth objectives. Irene Nattel, an analyst at RBC Capital Markets, described the acquisition plan as both bold and measured, emphasizing its potential to significantly advance Couche-Tard’s business goals.