Alimentation Couche-Tard Inc. has set its sights on acquiring Polish convenience store operator Zabka Group following unsuccessful attempts to purchase a French grocer and a major global convenience store chain. The Quebec-based company, owner of Couche-Tard and Circle K stores, revealed its offer of over $12 billion for a controlling interest in Zabka, valuing each share at 32 Polish zloty or approximately $11.90 Canadian dollars.
If successful, this deal would represent Couche-Tard’s largest acquisition to date, aligning with its strategic goal of significantly expanding its business empire. Zabka, known for its network of more than 13,000 convenience stores in Poland and Romania, complements Couche-Tard’s presence with its diverse product offerings, including beverages, snacks, and an increasing focus on hot food options.
While Zabka emphasizes quick-serve meals and innovative autonomous store concepts, Couche-Tard shines in the beverage and fuel sectors, operating approximately 13,200 locations with gas stations. Couche-Tard’s CEO, Alex Miller, emphasized the synergies between the two companies and their shared commitment to customer service during discussions about the proposed transaction, foreseeing potential cost savings of around $250 million USD within three years of finalizing the deal.
The decision to pursue Zabka was influenced by Couche-Tard’s founder, Alain Bouchard, who redirected the company’s attention to the Polish convenience store operator. This move comes after Couche-Tard’s previous failed attempts at acquisitions, including a bid for French grocery chain Carrefour SA and negotiations with Seven & i Holdings, the parent company of 7-Eleven.
The proposed transaction with Zabka has garnered support from Zabka’s executive management and key investors, including CVC Capital Partners and Partners Group, representing 57% of the company’s outstanding shares. The deal is pending regulatory approvals and is expected to be finalized by December, with the possibility of delisting Zabka from the Warsaw Stock Exchange if Couche-Tard acquires a significant majority of voting rights.
Analysts view Couche-Tard’s strategic move positively, highlighting the potential for substantial growth and alignment with the company’s long-term objectives. Irene Nattel, an analyst at RBC Capital Markets, described the acquisition plan as both daring and calculated, underscoring its significance in advancing Couche-Tard’s business goals.