Alimentation Couche-Tard Acquires Controlling Stake in Poland's Żabka Group
Alimentation Couche-Tard has announced its agreement to acquire a controlling stake in Poland’s leading convenience retailer, Żabka Group. The deal is described as the largest and most transformational acquisition in the company’s history, adding approximately 13,000 stores and processing around 4.3 million daily transactions. CEO Alex Miller emphasized that this move aligns with Couche-Tard's 'Core Plus More' growth strategy by combining complementary strengths in food offerings, digital engagement, supply chain efficiency, loyalty programs, and innovation. Żabka Group generates approximately $7.4 billion in annual revenue, with an adjusted EBITDA of around $1.1 billion and a net profit of about $300 million. The company's franchise model supports strong unit economics and scalability, while its digital ecosystem engages over 10 million customers annually. Couche-Tard expects more than $250 million in annual synergies by the third year post-closing. The all-debt financed transaction is expected to raise leverage to about three times net debt-to-EBITDA but will dilute earnings initially before becoming accretive in the second year after closing. The deal, subject to a tender offer and regulatory approvals, is anticipated to close by December 2026.
Topics: convenience retail growth strategy mergers and acquisitions