Alimentation Couche-Tard Inc., headquartered in Laval, Quebec, has set its sights on a new acquisition after previous unsuccessful attempts to purchase a French grocer and a major global convenience store chain. The company revealed its intention to acquire Polish convenience store operator Zabka Group, with an offer exceeding $12 billion for a majority stake in Zabka. The proposed tender offer values Zabka at 32 Polish zloty per share, approximately $11.90 Cdn.
If successful, this deal would mark the largest acquisition in Couche-Tard’s history and align with its strategic goal of expanding its market presence significantly. Zabka, named after the Polish word for ‘frog,’ boasts a network of over 13,000 convenience stores spanning Poland and Romania. In comparison, Couche-Tard operates 17,300 stores across 27 countries, with nearly 400 stores in Poland.
Both companies share similarities in their product offerings, emphasizing a wide selection of beverages, snacks, and an increased focus on hot food items. Zabka stands out with a significant portion of its transactions involving quick-serve meals, and some locations operating autonomously. In contrast, Couche-Tard shines in beverages and fuel sales, with approximately 13,200 of its stores featuring gas stations, a service not provided by Zabka.
Couche-Tard’s CEO, Alex Miller, emphasized the complementary strengths and shared customer-centric vision driving the proposed acquisition during an analyst call. The potential synergies could yield around $250 million US in cost savings within three years of finalizing the transaction. The interest in Zabka has been long-standing, with Couche-Tard executives, led by founder Alain Bouchard, considering the company for over 15 years.
Following previous failed acquisition attempts, including a bid for Carrefour SA and negotiations with Seven & i Holdings, Couche-Tard redirected its focus towards Zabka. The deal, subject to regulatory approvals, is anticipated to conclude by December. The extent of Couche-Tard’s ownership in Zabka will depend on shareholder acceptance, with a potential complete integration or continued public trading on the Warsaw Stock Exchange.
Market analysts view the proposed acquisition as a bold yet strategic move that aligns with Couche-Tard’s growth objectives. Irene Nattel, an analyst at RBC Capital Markets, described the plan as promising and likely to drive significant long-term benefits for the company.
