Alimentation Couche-Tard Inc., a company based in Laval, Quebec, known for owning Couche-Tard and Circle K stores, has set its sights on acquiring Zabka Group, a Polish convenience store operator. The proposed offer for a controlling stake in Zabka is valued at over $12 billion, with each share priced at 32 Polish zloty, equivalent to approximately $11.90 Canadian dollars.
This potential deal, if successful, would mark Couche-Tard’s largest acquisition to date and align with its strategic goal of expanding its operational footprint significantly. Zabka, named after the Polish word for frog, operates more than 13,000 convenience stores in Poland and Romania, while Couche-Tard boasts 17,300 locations across 27 countries, including nearly 400 stores in Poland.
Both companies share similarities in their product offerings, with a focus on beverages, snacks, and hot food items. Zabka stands out for its quick-serve meals, with one in five transactions including a meal, and some stores being fully autonomous. In contrast, Couche-Tard emphasizes beverages and fuel, operating around 13,200 locations with gas stations, a feature absent in Zabka stores.
Couche-Tard’s CEO, Alex Miller, emphasized the complementary strengths and shared customer-centric vision driving the proposed acquisition. The company anticipates unlocking approximately $250 million in cost savings within three years of closing the deal. The interest in Zabka dates back over a decade, with founder Alain Bouchard and other executives considering the company for around 15 years.
Despite previous unsuccessful attempts to acquire other major players in the industry, including French grocer Carrefour SA and Japanese giant Seven & i Holdings, Couche-Tard’s pursuit of Zabka signals a new chapter in its expansion strategy. The transaction is expected to close by December, subject to regulatory approvals, with the ultimate integration of Zabka into Couche-Tard’s operations or its continued listing on the Warsaw Stock Exchange under consideration. Analysts view the potential acquisition as a bold yet strategic move that aligns with Couche-Tard’s long-term growth objectives.