Edina-based Nash Finch announced last week that it is being acquired by Spartan Stores in a $1.3 billion stock-and-debt deal that is yet another example of the consolidation in the grocery distribution business.
Ajay Jain, a Cantor Fitzgerald analyst, wrote that, to some degree, the deal may be "an issue of strategic necessity, particularly in the case of Nash Finch, which has been having execution issues."
Check coverage
Minneapolis-based investment banking firm Feltl and Co. initiated coverage last week on Deluxe Corp. Analyst Randy Hugen is starting coverage on the Shoreview-based company with a "buy" rating and a $46 price target.
Deluxe is best known as a printer of checks and other financial documents, but for several years it has been leveraging its relationships with small businesses and financial institutions to provide a full suite of marketing business services. Growth in business marketing services are offsetting declines in use of printed checks. Hugen likes that focus, writing: "We believe Deluxe now has one of the most comprehensive platforms in the market allowing small businesses to market their company through a single partner."
PATRICK KENNEDY
