Canadian owner of Circle K to acquire Żabka for 32.6 billion złoty; brand and management to stay

The deal

Alimentation Couche-Tard, the Canadian owner of Circle K, will launch a tender offer for 100% of Żabka Group shares at 32 PLN per share, valuing the Polish convenience chain at about 32.62 billion złoty (approximately 8.6 billion USD). The transaction agreement was signed with Circle K Polska, a subsidiary of ACT. Key shareholders have committed to sell: Heket holds 37.624% of the share capital, PG Investment Company holds 10.013%, and management collectively holds over 9%, bringing total support to about 57% of existing shares. The tender offer is set to begin in August, with closing expected by the end of the fourth quarter of 2026.

What stays the same

Żabka will continue to operate independently under its current management team, and the brand will remain on the market. Alex Miller, CEO of Alimentation Couche-Tard, said during a Friday video conference that the existing management team is reinvesting in the company and will remain responsible for strategy and development. Tomasz Blicharski, Chief Strategy and Development Officer and future CEO of Żabka, emphasized that Żabka is one of the strongest brands in Poland and that the combination will create a leading pan-European convenience platform. The company's over 13,000 stores in Poland and Romania, serving about 4.3 million customers daily, will see no disruption.

Żabka will continue to operate independently, without disruption to daily operations, under the leadership of the existing management team, which together with us is reinvesting in the company and remains responsible for executing the strategy and development of Żabka.

Żabka is one of the strongest brands in Poland, not only in retail but across all industries. We discussed keeping the Żabka brand on the market.

Financials and valuation

For the twelve months ended March 31, 2026, Żabka reported revenue of about 7.4 billion USD, adjusted EBITDA of about 1.1 billion USD, and net profit of about 0.3 billion USD. The offer price of 32 PLN per share represents a premium of roughly 49% over the IPO price of 21.50 PLN in October 2024. The implied market capitalization of 32.62 billion złoty makes this the largest acquisition in Couche-Tard's history.

Market reaction

Żabka shares jumped about 10% on the Warsaw Stock Exchange on Friday, trading around 32.34 PLN and briefly touching 32.80 PLN, above the offer price. The surge helped push the WIG20 index closer to its all-time high from 2007, with the index gaining about 0.5% at times. Broader European markets also rose, and Asian markets saw sharp rebounds, with South Korea's Kospi up nearly 19% and Japan's Nikkei 225 up over 4%.

Analyst views

Some analysts see room for a higher offer. Janusz Pięta of mBank values Żabka at 33 PLN per share and expects an additional control premium. Grzegorz Kujawski of Trigon DM had a target price of 34 PLN. Piotr Bogusz of Erste Securities noted that the proposed price may be raised to include a control premium, though his previous target of 19.6 PLN was based on an overhang of private equity shares that is now resolved. Sebastian Buczek, CEO of Quercus TFI, called the price attractive for IPO investors, representing a nearly 50% gain.

Background and previous interest

Żabka, founded in 1998, went public on the Warsaw Stock Exchange in October 2024. In mid-July, Japanese retail giant Seven & i Holdings, operator of 7-Eleven, was reported to be considering a stake in Żabka, but it withdrew on July 25, clearing the way for Couche-Tard. Żabka is currently expanding in Romania, where it operates about 250 stores and opens new ones monthly.