After failing in previous acquisition attempts, Alimentation Couche-Tard Inc. has set its sights on a new target. The Quebec-based company, known for its Couche-Tard and Circle K stores, revealed its intention to acquire Polish convenience store operator Zabka Group.
Alimentation Couche-Tard has proposed a deal valued at over $12 billion for a controlling stake in Zabka, pricing each share at 32 Polish zloty or approximately $11.90 Canadian dollars. If successful, this acquisition would mark the largest in Couche-Tard’s history and align with its goal of significant expansion.
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 17,300 locations, including nearly 400 stores in Poland.
Both companies share similarities in their offerings, with a focus on beverages, snacks, and expanding their food options. Zabka emphasizes quick-serve meals, with one in five transactions including food, while Couche-Tard places emphasis on beverages and fuel, boasting 13,200 locations with gas stations.
CEO Alex Miller highlighted the synergies between the two companies, aiming to enhance customer service and achieve cost savings of approximately $250 million within three years of closing the deal. The acquisition of Zabka has been a long-term consideration for Couche-Tard, with founder Alain Bouchard suggesting a renewed interest in the company.
Zabka’s incoming CEO, Tomasz Blicharski, expressed openness to the acquisition, noting the shared customer-centric approach between the companies. The deal has garnered unanimous support from Zabka’s key stakeholders, including private equity firms CVC Capital Partners and Partners Group.
The acquisition is pending regulatory approvals and is anticipated to be finalized by December. Couche-Tard’s integration plans for Zabka remain flexible, with options to either fully integrate it or maintain its status as a public entity on the Polish Stock Exchange. Analysts view this move as strategically bold and potentially beneficial for Couche-Tard’s long-term growth objectives.
