Alimentation Couche-Tard Inc., based in Laval, Quebec, has set its sights on acquiring Polish convenience store operator Zabka Group after unsuccessful attempts to purchase a French grocer and a major global convenience store chain. The offer for a controlling stake in Zabka is valued at over $12 billion, with each share priced at 32 Polish zloty, approximately $11.90 Canadian dollars.
If the deal goes through, it would mark Couche-Tard’s largest acquisition to date, aligning with its goal of significantly expanding its business empire. Zabka, known for its more than 13,000 convenience stores in Poland and Romania, has become a prime target for Couche-Tard, which operates 17,300 stores across 27 countries, including around 400 in Poland.
Both companies share similarities in their product offerings, emphasizing a wide range of beverages, snacks, and an increased focus on hot food items. While Zabka excels in quick-serve meals and operates some fully autonomous locations, Couche-Tard stands out with its emphasis on beverages and fuel, with approximately 13,200 locations featuring gas stations.
During discussions regarding the proposed acquisition, Couche-Tard’s CEO, Alex Miller, highlighted the synergies between the two companies and the shared commitment to enhancing customer service. The potential deal is expected to yield around $250 million in cost savings within three years of completion.
The decision to pursue Zabka has been on Couche-Tard’s radar for over a decade, with the company’s executives, including founder Alain Bouchard, expressing interest in the Polish convenience store chain. Despite facing challenges in previous acquisition attempts, Couche-Tard remains determined to expand its reach in the global market.
The transaction, subject to regulatory approvals, is anticipated to be finalized by December. The level of ownership Couche-Tard will attain in Zabka depends on shareholder acceptance of the offer. If Couche-Tard secures at least 95% of the voting rights in Zabka, it could potentially delist the company from the Warsaw Stock Exchange.
RBC Capital Markets analyst Irene Nattel commended Miller’s strategic approach, deeming it both bold and measured. The potential acquisition of Zabka is seen as a significant step towards Couche-Tard’s long-term growth objectives, offering promising prospects for the company’s future expansion.
