A roundup of some of the North American equities making moves in both directions today
On the rise
Empire Company Ltd. (EMP-A-T) was higher with the premarket announcement it has signed a deal to buy a 51-per-cent stake in specialty grocery store chain Longo’s and its Grocery Gateway e-commerce business for $357 million.
The parent company of Sobeys says the deal adds two high-quality banners to its business and helps it grow in Ontario.
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Under the deal, Longo’s and Grocery Gateway will continue to be led by CEO Anthony Longo.
However, Empire says Longo’s will be able to benefit from its infrastructure and capabilities, in areas such as sourcing, logistics and real estate.
Longo’s has 36 locations in the Greater Toronto Area, while Grocery Gateway serves 70,000 customers.
In a research note, ATB Capital Markets analyst Kenric Tyghe said: “We consider the acquisition of Longo’s to be positive to our thesis …