Transaction Represents Largest Acquisition In Couche-Tard History And Establishes Controlling Position In One Of Europe's Leading Convenience And Digital Retail Platforms
Alimentation Couche-Tard Inc. ("Couche-Tard") (TSX: ATD), a global leader in convenience and mobility, today announced that it plans to acquire all of the issued and outstanding shares of Żabka Group ("Żabka") (WSE: ZAB), Poland's largest convenience retailer. Couche-Tard will initiate a voluntary tender offer through its wholly owned subsidiary, Circle K Polska sp. z.o.o. ("Circle K Polska"), at a price of PLN 32.00 (equivalent of US$8.48) per share (the "Offer"), representing a total equity value of approximately PLN 32.62 billion (equivalent of US$8.6 billion) (the "Transaction").
The Transaction is unanimously supported by Żabka's key executive managers, and shareholders owning, in aggregate, approximately 58% of Żabka's issued and outstanding shares, including CVC Capital Partners and Partners Group, who have entered into separate hard irrevocable agreements to tender all of their shares of Żabka into the Offer.
Couche-Tard expects to fund the Transaction through fully committed debt facilities underwritten by J.P. Morgan as Lead Arranger, with National Bank of Canada Capital Markets and The Bank of Nova Scotia acting as Joint Bookrunners.
Founded in 1998, based in Poznań, Poland, and listed on the Warsaw Stock Exchange since October 2024, Żabka Group operates more than 13,000 convenience stores across Poland and Romania and services approximately 4.3 million average daily transactions. Its network is built around compact, modular neighborhood stores averaging approximately 65 square meters (~700 square feet), strategically located across urban, suburban and rural communities to serve immediate consumption and everyday convenience needs. Żabka boasts one of Europe's most advanced convenience retail platforms – an integrated and increasingly diversified ecosystem with approximately 11.7 million users across its digital channels, a best-in-class loyalty program, advanced data and analytics capabilities, and a growing portfolio of digital, e-commerce and foodservice businesses.
For Couche-Tard, the acquisition will add an immediate, scaled platform in Central and Eastern Europe, preserving Żabka's management structure, highly recognized brand, entrepreneurial franchise model and local expertise. In Poland, it will complement the company’s existing network of nearly 400 Circle K service stations offering fuel as well as food & beverages and other convenience items.
Assuming completion of the Transaction, it would represent Couche-Tard’s largest acquisition to date and significantly advance its Core + More strategy by adding a differentiated platform to support long-term growth, innovation and value creation.
We are incredibly proud of everything that has been achieved during our partnership with Żabka
István Szőke Managing Partner at CVC
"This is a transformational investment for Couche-Tard and an important milestone in our growth journey," said Alex Miller, President and Chief Executive Officer of Alimentation Couche-Tard. "Żabka has built one of Europe's most impressive convenience retail businesses, combining a powerful customer proposition with an entrepreneurial franchise model, a highly disciplined and proven operating platform, and a strong track record of growth. We have tremendous respect for what the Żabka team and its franchisees have accomplished. We are committed to supporting the continued growth of the Żabka business while drawing from its strengths in areas such as food, digital engagement, customer loyalty, private brand, supply chain, logistics and innovation, and as a result, further accelerating our Core + More strategy. Together, we will be well positioned to create lasting value for customers, franchisees, employees, business partners, and shareholders."
Tomasz Blicharski, Chief Strategy and Development Officer and Chief Executive Officer designate of Żabka Group, said: “Today's transaction marks the beginning of an entirely new and exciting chapter for Żabka Group. Couche-Tard shares our commitment to innovation, convenience and customer-centricity and recognizes the strength of the brand, the franchise community and the team that have made Żabka one of Europe's leading convenience platforms. Together, we will be even better positioned to accelerate growth, continue investing in our people and capabilities, and create even greater value for customers, franchisees, and communities."
Tomasz Suchański, CEO and Chairperson of the Board of Directors of Żabka Group, said: "Thanks to the dedication of our employees and the continued support of our customers, franchisees and business partners, we have built a company that has grown into one of Europe’s leading convenience platforms and become an attractive partner for one of the industry’s leading players. Today’s announcement reflects the strength of our business, the power of our brand, and the long-term value we have created together. It follows a highly successful nine-year partnership with CVC – and with Partners Group, which invested in 2019 – during which Żabka Group underwent a remarkable transformation, strengthened its market position and expanded into new areas of growth. This milestone would not have been possible without the commitment, passion, and hard work of everyone who has contributed to this journey.”
István Szőke, Managing Partner of CVC, said, “We are incredibly proud of everything that has been achieved during our partnership with Żabka. Together with an exceptional management team, we have built Europe’s leading convenience retail platform through technological innovation, operational excellence and disciplined execution, creating lasting value for customers, franchisees, employees and shareholders. We thank the entire Żabka team for their commitment and partnership and are confident Couche-Tard will be an outstanding long-term steward as the company embarks on its next chapter.”
The full press release can be viewed here.