Alimentation Couche-Tard to Acquire Poland's Zabka Group for $8.7 Billion

Alimentation Couche-Tard Inc. (TSX:ATD), the parent company of Circle K, announced on Friday its intention to acquire Polish convenience retail giant Zabka Group (WA:ZAB) for approximately PLN 32.62 billion ($8.71 billion). The deal represents the largest acquisition in the Canadian operator's history and signals a major strategic expansion into Central and Eastern Europe.

Deal Structure and Terms

Couche-Tard plans to launch a voluntary tender offer through its Polish subsidiary to acquire all of Zabka's outstanding shares for PLN 32.00 per share in cash. The company stated that the offer has already secured backing from shareholders representing about 57% of Zabka's shares.

Key backers of the transaction include private equity firms CVC Capital Partners and Partners Group, as well as Zabka's senior management. Couche-Tard intends to finance the acquisition using committed debt facilities.

Strategic Rationale

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The acquisition significantly scales up Couche-Tard's European footprint. Founded in 1998, Zabka operates a network of over 13,000 convenience stores across Poland and Romania, serving an estimated 4.3 million customers daily. The Polish retailer also boasts a substantial digital ecosystem with 11.7 million users.

Couche-Tard said the deal aligns with its "Core + More" strategy and that it plans to preserve Zabka's existing management team, franchise model, and brand identity. The company projects the acquisition will generate approximately $250 million in annual cost and revenue synergies by the third year after the transaction closes.

Path to Completion

The transaction is subject to regulatory approvals and is expected to be finalized by December 2026. Couche-Tard also noted its objective to delist Zabka from the stock exchange if it successfully secures at least 95% of the company's voting rights through the tender offer.