Alimentation Couche-Tard Inc., based in Laval, Que., has set its sights on acquiring Zabka Group, a Polish convenience store operator, following unsuccessful attempts to purchase a French grocer and a major global convenience store chain. The proposed deal involves a bid exceeding $12 billion for a controlling interest in Zabka, valuing each share at 32 Polish zloty, approximately $11.90 Canadian. This potential acquisition would mark Couche-Tard’s largest takeover to date, aligning with its strategic goal of expanding its business significantly.
Zabka, named after the Polish word for frog, operates over 13,000 convenience stores in Poland and Romania, while Couche-Tard, recognized for its Couche-Tard and Circle K stores and owl mascot, boasts 17,300 locations across 27 countries, including nearly 400 stores in Poland. Both companies offer a wide range of beverages, snacks, and hot food options, with Zabka emphasizing quick-serve meals and some autonomous locations, while Couche-Tard focuses on beverages and fuel, operating around 13,200 stores with gas stations.
Couche-Tard’s CEO, Alex Miller, emphasized that the proposed merger aims to leverage the strengths of both companies to enhance customer service. The deal is anticipated to generate approximately $250 million in cost savings within three years of completion. Couche-Tard’s interest in Zabka dates back at least 15 years, with the latest bid representing a culmination of long-standing strategic considerations. The transaction, subject to regulatory approvals, is anticipated to finalize by December, allowing Couche-Tard to potentially acquire a majority stake in Zabka, leading to its delisting from the Warsaw Stock Exchange.
Tomasz Blicharski, Zabka’s incoming CEO, expressed openness to Couche-Tard’s proposal, highlighting the shared customer-centric approach between the two companies. The agreement has garnered unanimous support from Zabka’s executive managers and major shareholders, including private equity firms CVC Capital Partners and Partners Group. Analysts view the potential acquisition as a bold yet calculated move that aligns with Couche-Tard’s growth strategy, pending regulatory clearances and shareholder acceptance.