The Czech-and-Slovak private equity company Penta Investments has come to agreement with AIG Global Investment Group and Switalski & Synowie on the acquisition of Zabka Polska, the largest independent convenience store chain in Poland. The transaction value exceeds PLN 500m (€131.6m).
Jozef Janov, Investment Director of Penta commented on the transaction: “We like the unique business model of Zabka, its strong market position and the positive perception that it receives from its customers. For us, Zabka is a retail network that we want to intensely develop in Poland as well as to use as a platform that will serve us to expand in other Central and Eastern European countries”. Penta intends to launch pilot convenience outlets in the Czech Republic and Slovakia. The existing Polish network of 1,800 stores is expected to grow to 2,500 in the next five years.
Zabka, established in 1999, is a chain of approx. 1,800 agent-run stores with 80 m² of sales area offering food, beverages and services such as GSM card recharging, bill payments and lottery tickets. In 2006, Zabka recorded sales of PLN 1.24bn (€326.3m) and EBITDA of PLN 45.5m (€12m).
Apart from Penta, also Ruch, a newspaper distributor, was interested in acquiring Zabka, however, its offer was rejected. At the same time, it has announced that it still plans to takeover a small-format store chain and to organically develop a convenience store network.