ALIMENTATION COUCHE-TARD ANNOUNCES AGREEMENT TO ACQUIRE CONTROLLING STAKE IN ŻABKA GROUP AND LAUNCHES VOLUNTARY TENDER OFFER

Alimentation Couche-Tard Inc. has announced its intention to acquire Żabka Group, Poland's largest convenience retailer, in a landmark transaction valued at approximately $8.6 billion. The acquisition will be executed through a voluntary tender offer, with Couche-Tard offering PLN 32.00 (around $8.48) per share, representing a total equity value of approximately PLN 32.62 billion. This deal, which was disclosed on July 31, 2026, marks Couche-Tard's largest acquisition to date and is supported by shareholders owning about 57% of Żabka's shares, including major stakeholders CVC Capital Partners and Partners Group.

Founded in 1998 and headquartered in Poznań, Żabka Group operates over 13,000 convenience stores across Poland and Romania, catering to approximately 4.3 million average daily transactions. The retailer has established a robust network of compact, modular neighborhood stores, averaging around 65 square meters, strategically positioned to meet immediate consumption and convenience needs. Żabka has distinguished itself with a highly advanced retail platform, leveraging digital channels, a strong loyalty program, and innovative data analytics capabilities, making it one of Europe's leading convenience retailers.

For Couche-Tard, the acquisition of Żabka represents a significant strategic move to enhance its presence in Central and Eastern Europe. The transaction aligns with Couche-Tard's Core + More strategy, which aims to diversify its offerings and drive long-term growth. By integrating Żabka's established brand and operational expertise, Couche-Tard seeks to bolster its existing network of nearly 400 Circle K service stations in Poland, which provide fuel, food, and other convenience items. The retention of Żabka's management structure and entrepreneurial franchise model is expected to facilitate a smooth transition and continued operational success.

The convenience retail sector is experiencing dynamic growth, driven by changing consumer preferences for convenience and immediacy. As urbanization continues to rise and e-commerce expands, retailers are increasingly focusing on enhancing their digital capabilities and customer engagement strategies. Couche-Tard's acquisition of Żabka is poised to capitalize on these trends, further positioning the company as a leader in the convenience retail space.

As the transaction progresses, it is anticipated to have broader implications for the convenience retail market in Europe. Couche-Tard's investment in Żabka underscores the growing importance of convenience and digital integration in retail, which could prompt further consolidation in the sector. The successful execution of this acquisition may serve as a model for similar transactions, as companies seek to enhance their competitive positioning in an evolving marketplace.