Circle K owner Couche-Tard to buy Poland’s Zabka for $8.7B

Alimentation Couche-Tard, the Canadian convenience store giant that operates the Circle K chain, announced on Friday it will acquire Poland's Zabka Group in a deal valued at approximately 32.62 billion zlotys ($8.72 billion), marking the largest acquisition in the company's history.investing+1

The transaction will see Couche-Tard launch a voluntary tender offer for all of Zabka's outstanding shares at 32.00 zlotys per share, a premium of about 9.4% to the Polish retailer's last closing price. The deal is backed by shareholders representing roughly 57% of Zabka's outstanding shares, including private equity firms CVC Capital Partners and Partners Group, as well as senior management.marketscreener+1

A Major European Expansion

The acquisition would dramatically expand Couche-Tard's footprint in Central and Eastern Europe. Zabka, founded in 1998, operates more than 13,000 convenience stores across Poland and Romania, serving approximately 4.3 million customers daily. The retailer also boasts about 11.7 million digital users across its online platforms, making it one of Europe's largest convenience and digital retail ecosystems.investing

Couche-Tard said the deal strengthens its "Core + More" strategy by adding a scaled convenience retail platform while preserving Zabka's management team, franchise model, and brand. The company expects approximately $250 million in annual cost and revenue synergies by the third year after closing.investing

Seven & i Stepped Aside

The deal comes after Japanese retailer Seven & i Holdings decided against proceeding with a potential investment in Zabka last week, according to Reuters. That decision cleared the path for Couche-Tard to pursue its bid.marketscreener

Couche-Tard plans to finance the transaction with committed debt facilities. The deal is subject to regulatory approvals and is expected to close by December 2026, with the company aiming to delist Zabka if it secures at least 95% of voting rights.bloomberg+1

Strategic Context

For Couche-Tard, which already operates a global network of more than 16,000 stores primarily under the Circle K banner, the Zabka acquisition represents a pivot toward high-growth European markets. The Polish convenience sector has expanded rapidly in recent years, driven by urbanization and changing consumer habits favoring smaller-format retail.

The deal was "unanimously supported" by Zabka's key executive managers and stakeholders, according to the company's announcement.marketscreener