After failing to acquire a French supermarket and a major global convenience store chain, Alimentation Couche-Tard Inc. has set its sights on a new takeover target. The company, based in Laval, Quebec and known for its Couche-Tard and Circle K stores, revealed its intention to acquire the Polish convenience store operator Zabka Group.

Alimentation Couche-Tard has made a bid exceeding $12 billion for a controlling interest in Zabka, valuing the company at 32 Polish zloty, approximately $11.90 Canadian dollars per share. If successful, this deal would mark the largest acquisition ever for Couche-Tard and fulfill its objective of significantly expanding its business empire.

Zabka, named after the Polish word for frog, operates over 13,000 convenience stores in Poland and Romania. In comparison, Alimentation Couche-Tard boasts 17,300 stores across 27 countries, including nearly 400 stores in Poland.

Both companies have similarities in their offerings, with a wide range of beverages, snacks, and an increased focus on hot food options. Zabka sees one in every five transactions involving a quick-serve meal, and some stores are fully automated. On the other hand, Couche-Tard’s strengths lie in beverages and fuel, with around 13,200 locations featuring gas stations.

Alain Bouchard, Couche-Tard’s founder, recommended reconsidering Zabka as a potential target after previously diverting attention to other acquisitions. The proposed deal received support from Zabka’s executive managers and majority shareholders, including private equity firms CVC Capital Partners and Partners Group.

While the transaction is subject to regulatory approvals, it is anticipated to be finalized by December. The extent of Couche-Tard’s stake in Zabka will depend on shareholder acceptance of the offer. If Couche-Tard secures at least 95% of Zabka’s voting rights, it may delist the company from the Warsaw Stock Exchange where it went public two years ago.

RBC Capital Markets analyst Irene Nattel viewed the acquisition plan as both daring and calculated, potentially advancing Couche-Tard’s long-term growth objectives significantly. She highlighted the strategic and financial alignment between the two companies as sensible and promising for future growth.