Alimentation Couche-Tard Inc., based in Laval, Quebec, known for its Couche-Tard and Circle K stores, has set its sights on acquiring Zabka Group, a Polish convenience store operator. The offer for a controlling stake in Zabka amounts to over $12 billion, valuing each Zabka share at 32 Polish zloty, around $11.90 Canadian dollars.
If successful, this deal would mark Alimentation Couche-Tard’s largest acquisition, fulfilling its goal of significantly expanding its presence. Zabka, named after the Polish word for frog, operates more than 13,000 convenience stores in Poland and Romania, while Couche-Tard has 17,300 locations across 27 countries, including nearly 400 stores in Poland.
Both companies share similarities in their offerings, focusing on a wide range of beverages, snacks, and expanding into hot food options. Zabka has a significant focus on quick-serve meals, with some stores operating autonomously, while Couche-Tard excels in beverages and fuel, with approximately 13,200 locations featuring gas stations.
CEO Alex Miller emphasized that the acquisition aims to leverage the complementary strengths of both companies to better serve customers, with anticipated cost savings of around $250 million within three years of the deal closing. The acquisition of Zabka has been a long-term consideration, with executives having Zabka on their radar for over 15 years.
The transaction is subject to regulatory approvals and is expected to be finalized by December. The extent of Couche-Tard’s acquisition of Zabka shares will depend on shareholder acceptance. Should Couche-Tard secure at least 95% of Zabka’s total voting rights, the company plans to delist Zabka from the Warsaw Stock Exchange.
RBC Capital Markets analyst Irene Nattel views the acquisition as a strategic move that aligns with Couche-Tard’s growth objectives. She sees the plan as both bold and measured, with the potential to significantly advance the company’s long-term goals.