NEW YORK (TheStreet) -- Shares of Fresh Market (TFM) are surging 23.85% to $28.46 in pre-market trading on Monday after the specialty grocery retailer agreed to be acquired by private equity firm Apollo Global Management (APO) for about $1.36 billion.

Apollo will pay $28.50 per share in cash for the Greensboro, NC-based company, a premium of about 24% of Fresh Market's close on Friday.

Fresh Market's board unanimously approved the deal, except for chairman and founder Ray Berry. He recused himself from all discussions related to the review of strategic alternatives and from voting on the agreement, the company said.

Berry and his son Brett own about 9.8% of Fresh Market's outstanding shares, the grocery retailer said.

"We are pleased to have reached this agreement with Apollo, which follows a comprehensive review of strategic and financial alternatives that generated interest from numerous parties. After an open and thorough process, our board concluded that this offer maximizes value for our stockholders," Rich Noll, Fresh Market's lead independent director, said in a statement this morning.

The transaction is expected to close in the second quarter of 2016.

Shares of Apollo closed at $16.91 on Friday.

Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on the stock.

The primary factors that have impacted the rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.

The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and largely solid financial position with reasonable debt levels by most measures.

As a counter to these strengths, the team also finds weaknesses including unimpressive growth in net income, a generally disappointing performance in the stock itself and weak operating cash flow.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: TFM

Image placeholder title

TFM

data by

YCharts