Alimentation Couche-Tard Inc., based in Laval, Quebec, has set its sights on Polish convenience store operator Zabka Group after unsuccessful attempts to acquire a French grocer and a major global convenience store chain. Couche-Tard has proposed a takeover valued at over $12 billion for a controlling interest in Zabka, pricing each share at 32 Polish zloty, approximately $11.90 Canadian dollars. If successful, this deal would mark Couche-Tard’s largest acquisition, fulfilling its goal of expanding its reach significantly.
Zabka, named after the Polish word for frog, operates more than 13,000 convenience stores in Poland and Romania. In comparison, Alimentation Couche-Tard operates 17,300 stores across 27 countries, with nearly 400 stores in Poland. Both companies share similarities in their offerings, focusing on a wide range of beverages, snacks, and hot food items.
While Zabka emphasizes quick-serve meals with some fully autonomous locations, Couche-Tard’s strengths lie in beverages and fuel, with approximately 13,200 stores featuring gas stations. Couche-Tard’s CEO, Alex Miller, highlighted the mutual benefits of the acquisition, emphasizing a customer-centric approach and potential cost savings of around $250 million US within three years of closing the deal.
The decision to pursue Zabka was influenced by founder Alain Bouchard’s recommendation, leading to the formal offer presented recently. Zabka’s incoming CEO, Tomasz Blicharski, expressed openness to Couche-Tard’s proposal, citing a shared customer-centric focus between the two companies. Key stakeholders, including private equity firms CVC Capital Partners and Partners Group, who collectively own 57% of Zabka shares, have unanimously backed the deal.
The transaction is pending regulatory approvals and is anticipated to be finalized by December. Couche-Tard’s acquisition of Zabka shares will depend on shareholder acceptance. If Couche-Tard secures at least 95% of Zabka’s voting rights, it may opt to delist Zabka from the Warsaw Stock Exchange. The future integration of Zabka within Couche-Tard’s operations remains under consideration, with detailed plans to be solidified before the deal’s completion.
Industry analysts view Couche-Tard’s strategic move positively, recognizing the potential for significant long-term growth. RBC Capital Markets analyst Irene Nattel described the proposal as both bold and calculated, suggesting that it aligns well with Couche-Tard’s growth objectives. Despite uncertainties regarding regulatory processes, timelines, and financial impacts, the overall strategic and financial rationale appears sound to investors.