Alimentation Couche-Tard Inc., headquartered in Laval, Quebec, has set its sights on a new acquisition following unsuccessful attempts to purchase a French grocery chain and a major global convenience store network. The company, which owns Couche-Tard and Circle K stores, revealed its intention to acquire Zabka Group, a Polish convenience store operator.
The proposed offer from Couche-Tard for a controlling stake in Zabka is valued at over $12 billion, with a tender offer pricing Zabka at 32 Polish zloty per share. If successful, this deal would mark Couche-Tard’s largest acquisition to date and align with its strategic goal of expanding its business 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 has a presence in 27 countries with a total of 17,300 locations, including nearly 400 stores in Poland.
Both companies share similarities in their offerings, with a focus on a diverse range of beverages, snacks, and a growing emphasis on hot food options. While Zabka specializes in quick-serve meals, some of its stores are fully automated. In contrast, Couche-Tard emphasizes beverages and fuel, with approximately 13,200 locations featuring gas stations.
According to Couche-Tard CEO Alex Miller, the proposed acquisition is about leveraging each company’s strengths to enhance customer service. The deal aims to generate around $250 million in cost savings within three years of completion. The interest in Zabka has been longstanding, with Couche-Tard executives, including founder Alain Bouchard, considering the company for over 15 years.
The transaction is subject to regulatory approvals and is expected to be finalized by December. The outcome will depend on the level of shareholder acceptance of the offer, with the possibility of Couche-Tard acquiring full control of Zabka. Analysts view the acquisition plan as a strategic move that could significantly advance Couche-Tard’s growth objectives in the long term.
