Alimentation Couche-Tard Inc., based in Laval, Quebec, and known for its Couche-Tard and Circle K stores, has set its sights on acquiring the Polish convenience store operator Zabka Group after failed attempts to purchase a French grocer and a major global convenience store chain.
The proposed deal involves a bid of over $12 billion for a controlling stake in Zabka, valuing each share at 32 Polish zloty, approximately $11.90 Canadian dollars. If successful, this acquisition would be Couche-Tard’s largest to date, aligning with its strategy to significantly expand its business reach.
Zabka, named after the Polish word for frog, operates more than 13,000 convenience stores in Poland and Romania. In comparison, Alimentation Couche-Tard has a presence in 27 countries with a total of 17,300 stores, including nearly 400 in Poland.
Both companies share similarities in their offerings, focusing on a wide range of beverages, snacks, and an increased emphasis on hot food selections. Zabka stands out for its quick-serve meal transactions, with some stores operating autonomously, while Couche-Tard shines in beverages and fuel sales, boasting approximately 13,200 locations with gas stations.
CEO Alex Miller emphasized that the proposed deal aims to leverage the strengths of both companies to enhance customer service, projecting cost savings of around $250 million USD within three years of completion. The decision to pursue Zabka has been in the works for years, with founder Alain Bouchard and other executives considering the potential partnership for over a decade.
The transaction is expected to receive regulatory approvals and close by December, with the integration plans still under consideration. If Couche-Tard secures at least 95% of Zabka’s voting rights, it may proceed to delist the company from the Warsaw Stock Exchange. Analysts view the acquisition as a strategic move that aligns with Couche-Tard’s growth objectives and financial outlook.