Alimentation Couche-Tard Inc., headquartered in Laval, Quebec, has set its sights on acquiring Zabka Group, a Polish convenience store operator, after previously failing to acquire a French grocer and a major global convenience store chain. The proposed offer for a controlling stake in Zabka is valued at over $12 billion, pricing Zabka at approximately $11.90 Canadian dollars per share.
If the deal goes through successfully, it would mark Couche-Tard’s largest acquisition to date, aligning with its strategic goal of expanding its business significantly. Zabka, known for its more than 13,000 convenience stores in Poland and Romania, shares similarities with Couche-Tard in terms of product offerings, including a wide range of beverages, snacks, and an emphasis on hot food items.
While Zabka focuses on quick-serve meals and some autonomous store operations, Couche-Tard’s strengths lie in beverages and fuel, with a significant presence in gas stations across its locations. Couche-Tard’s CEO, Alex Miller, emphasized that the acquisition is about combining complementary strengths to enhance customer service, with an anticipated $250 million US in cost savings within three years of the deal’s completion.
This move towards acquiring Zabka has been in the works for a long time, with Couche-Tard executives expressing interest in the company for at least 15 years. Following unsuccessful attempts at other acquisitions, including a bid for a French grocery chain and a Japanese convenience store parent company, Couche-Tard’s attention returned to Zabka, eventually leading to the current offer.
The transaction is subject to regulatory approvals and is expected to be finalized by December. The level of integration between Zabka and Couche-Tard post-acquisition is yet to be determined, with the possibility of Zabka remaining a public entity on the Polish Stock Exchange. Analysts view this strategic move positively, seeing it as a bold yet calculated step that aligns with Couche-Tard’s long-term growth strategy.
