Alimentation Couche-Tard Inc., based in Laval, Quebec, failed in previous attempts to acquire a French grocer and a major global convenience store chain. However, the company has now set its sights on a new target: Polish convenience store operator Zabka Group.
Couche-Tard has made a bid exceeding $12 billion for a controlling stake in Zabka, valuing each share at 32 Polish zloty, equivalent to around $11.90 Canadian dollars. If successful, this deal would be the largest acquisition ever for Couche-Tard, aligning with its goal of significantly expanding its business empire.
Zabka, which operates over 13,000 convenience stores in Poland and Romania, shares similarities with Couche-Tard in terms of offerings. Both companies provide a wide range of snacks and beverages, with an increased focus on offering hot food options. Zabka also boasts autonomous locations and a significant portion of quick-serve meals in its transactions.
In contrast, Couche-Tard emphasizes beverages and fuel, with approximately 13,200 locations featuring gas stations, a service that Zabka does not provide. Couche-Tard’s CEO, Alex Miller, highlighted the complementary strengths and customer-centric approach of both companies as key drivers behind the proposed transaction, anticipating cost savings of around $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 and other executives eyeing the company for at least 15 years. Previous attempts to acquire other companies, such as French grocery chain Carrefour SA and Seven & i Holdings, the parent company of 7-Eleven, did not materialize due to various reasons.
The deal with Zabka is supported by Zabka’s management, including incoming CEO Tomasz Blicharski, and major investors holding a majority stake in the company. The transaction is subject to regulatory approvals and is expected to be finalized by December. Depending on the acceptance of the offer by shareholders, Couche-Tard may acquire a significant portion of Zabka shares, potentially leading to a delisting from the Warsaw Stock Exchange.
RBC Capital Markets analyst Irene Nattel praised the strategic and financial fit of the deal, seeing it as a bold yet calculated move that could significantly advance Couche-Tard’s growth objectives. The company aims to further refine its integration plans with Zabka before the closing date, exploring the best synergies and benefits for both entities.