After failing in previous acquisition attempts, Alimentation Couche-Tard Inc. has set its sights on a new target. The Quebec-based company, owner of Couche-Tard and Circle K stores, revealed its interest in acquiring Polish convenience store operator Zabka Group.
Couche-Tard proposed a buyout exceeding $12 billion for a controlling interest in Zabka, valuing each share at 32 Polish zloty (approximately $11.90 Cdn). This potential deal, if successful, would mark the largest acquisition in Couche-Tard’s history and align with its strategy to expand significantly.
Zabka, with over 13,000 stores in Poland and Romania, offers a wide range of products similar to Couche-Tard’s offerings. While Zabka focuses on quick-serve meals and autonomous locations, Couche-Tard emphasizes beverages and fuel, with a substantial presence in 27 countries, including nearly 400 stores in Poland.
Couche-Tard’s CEO, Alex Miller, emphasized the complementary strengths of the two companies, highlighting the shared goal of enhancing customer service. The proposed merger aims to achieve approximately $250 million US in cost savings within three years of completion.
The decision to pursue Zabka was influenced by founder Alain Bouchard’s recommendation after years of consideration. Zabka’s incoming CEO, Tomasz Blicharski, expressed openness to the deal, citing Couche-Tard’s customer-centric approach as a key factor in their discussions.
With support from Zabka’s executives and major shareholders, including CVC Capital Partners and Partners Group, the acquisition is pending regulatory approval and is anticipated to finalize by December. The integration of Zabka into Couche-Tard remains under consideration, with potential options including full integration or continued operation as a public entity on the Warsaw Stock Exchange.
Analysts view the proposed acquisition as a strategic move that aligns with Couche-Tard’s growth objectives. Irene Nattel of RBC Capital Markets described the plan as both bold and measured, emphasizing the potential long-term benefits for Couche-Tard.
Overall, the proposed acquisition of Zabka signals Couche-Tard’s continued pursuit of strategic expansion opportunities in the global convenience store market.
