Alimentation Couche-Tard Inc., headquartered in Laval, Quebec, has shifted its focus to a new acquisition target after unsuccessful attempts to purchase a major French grocer and a global convenience store chain. The company has set its sights on acquiring Polish convenience store operator Zabka Group, with an offer exceeding $12 billion for a majority stake in Zabka. The proposed deal values Zabka at 32 Polish zloty per share, equivalent to approximately $11.90 in Canadian dollars.
If the acquisition is successfully completed, it will mark Alimentation Couche-Tard’s largest takeover to date, aligning with its strategic goal of expanding its business significantly. Zabka, known for its network of over 13,000 convenience stores in Poland and Romania, presents a compelling opportunity for Couche-Tard, which operates 17,300 stores across 27 countries including nearly 400 locations in Poland.
Both companies share similarities in their product offerings, emphasizing a wide selection of beverages, snacks, and an expanded focus on prepared food items. Zabka’s business model includes a significant portion of quick-serve meal transactions, with some stores operating autonomously, while Couche-Tard’s strengths lie in beverages and fuel sales, with approximately 13,200 locations featuring gas stations.
During discussions regarding the proposed transaction, Alimentation Couche-Tard’s CEO, Alex Miller, emphasized the complementary strengths of the two companies and their shared commitment to enhancing customer service. The deal is expected to generate around $250 million in cost savings within three years of completion.
The decision to target Zabka was influenced by founder Alain Bouchard’s recommendation following years of consideration by Couche-Tard executives. While previous acquisition attempts, such as the bid for Carrefour SA and the pursuit of Seven & i Holdings, did not materialize, the focus has now shifted to Zabka as a key opportunity for growth.
With the support of Zabka’s executive leadership and major shareholders, including private equity firms CVC Capital Partners and Partners Group, the transaction is expected to receive regulatory approvals and close by December. Depending on the level of shareholder acceptance, Couche-Tard may acquire a majority stake in Zabka, potentially leading to its delisting from the Warsaw Stock Exchange. The integration of Zabka into Couche-Tard’s operations is under consideration, with a decision expected before the closing of the deal.
Financial analysts view the acquisition plan as a strategic move that aligns with Couche-Tard’s growth objectives. Irene Nattel of RBC Capital Markets described the proposal as both bold and measured, highlighting its potential to drive long-term growth for the company.