After failing in previous attempts to acquire a French grocer and a major global convenience store chain, Alimentation Couche-Tard Inc. has set its sights on a new takeover target. The company, based in Laval, Quebec and known for its Couche-Tard and Circle K stores, revealed its intention to acquire Polish convenience store operator Zabka Group.
Couche-Tard has put forward an offer exceeding $12 billion for a controlling interest in Zabka, valuing the company’s shares at 32 Polish zloty or approximately $11.90 Canadian dollars each. The successful completion of this deal would mark the largest acquisition ever for Couche-Tard, aligning with its strategic goal of significantly expanding its business operations.
Zabka, which operates over 13,000 convenience stores in Poland and Romania, stands out for its extensive network. In comparison, Alimentation Couche-Tard has a presence in 27 countries with 17,300 locations, including 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 witnesses one in five transactions involving quick-serve meals, with some outlets operating autonomously. On the other hand, Couche-Tard’s emphasis lies on beverages and fuel, with approximately 13,200 locations featuring gas stations, a service Zabka does not provide.
During discussions regarding the proposed acquisition, Couche-Tard’s CEO Alex Miller stressed the importance of leveraging each company’s strengths and shared commitment to enhancing customer service. He anticipates achieving around $250 million in cost savings within three years of finalizing the deal.
The transaction has been a long time coming, with Couche-Tard’s executives, including founder Alain Bouchard, expressing interest in Zabka for at least 15 years. Despite facing challenges with other acquisition targets in the past, the company remains determined to expand its global footprint.
Zabka’s incoming CEO, Tomasz Blicharski, indicated the company’s openness to Couche-Tard’s proposal, emphasizing the shared customer-centric approach between the two organizations. Notably, key stakeholders representing 57% of Zabka’s shares, including private equity firms CVC Capital Partners and Partners Group, have unanimously endorsed the deal.
The acquisition is pending regulatory approvals and is projected to be finalized by December. The extent of shares acquired by Couche-Tard will depend on shareholder responses to the offer. Should Couche-Tard secure a minimum of 95% of Zabka’s voting rights, it plans to delist the company from the Warsaw Stock Exchange.
Looking ahead, Couche-Tard aims to optimize the integration process, exploring potential synergies between the two entities. Analysts view this move positively, seeing it as a strategic step that aligns with Couche-Tard’s long-term growth objectives.
