Alimentation Couche-Tard Inc., based in Laval, Quebec, has set its sights on acquiring Zabka Group, a Polish convenience store operator. The company has made a bid exceeding $12 billion for a controlling interest in Zabka, valuing each share at 32 Polish zloty (around $11.90 Cdn). If successful, this deal would be Couche-Tard’s largest acquisition to date, allowing it to significantly expand its global presence.
Zabka, known for its more than 13,000 convenience stores in Poland and Romania, shares similarities with Couche-Tard, which operates 17,300 stores across 27 countries. While Zabka focuses on quick-serve meals and autonomous stores, Couche-Tard is prominent in beverages and fuel, with over 13,200 locations featuring gas stations.
CEO Alex Miller emphasized that the proposed transaction aims to leverage the strengths of both companies to enhance customer service. The deal, anticipated to generate approximately $250 million US in cost savings within three years of closing, has been under consideration by Couche-Tard executives, including founder Alain Bouchard, for over a decade.
Despite previous failed attempts to acquire companies like Carrefour SA and Seven & i Holdings, Couche-Tard’s pursuit of Zabka reflects its persistent expansion strategy. Zabka’s incoming CEO, Tomasz Blicharski, expressed openness to the deal, noting the alignment in customer-centric approaches between the two companies.
With the support of key stakeholders, including private equity firms CVC Capital Partners and Partners Group, the acquisition is poised to proceed pending regulatory approvals, with an expected completion by December. The integration of Zabka into Couche-Tard remains flexible, with options to either fully incorporate it or maintain its status as a publicly traded entity on the Warsaw Stock Exchange.
Analysts view Miller’s strategic approach as both daring and prudent, positioning Couche-Tard for significant growth opportunities. Irene Nattel from RBC Capital Markets highlighted the potential benefits of the deal, underscoring its alignment with Couche-Tard’s long-term objectives.
As the transaction progresses, further details and priorities will be outlined, with a focus on maximizing synergies and enhancing operational efficiency.