NEW YORK (TheStreet) -- Krispy Kreme Doughnuts (KKD) stock is skyrocketing by 23.53% to $20.84 in Monday's pre-market trading session, as the company agreed to be bought by JAB Beech, a subsidiary of JAB Holding, in a deal valued at around $1.35 billion. 

JAB Holding, which also acquired Keurig Green Mountain last year, is offering $21 a share for the doughnut company, taking it private. 

"For nearly 80 years, our iconic brand has been touching and enhancing lives through the joy that is Krispy Kreme," Chairman of Krispy Kreme's board of directors Jim Morgan said. "This transaction puts us in the best possible position to continue to spread that joy to a growing number of people around the world while delivering significant value to Krispy Kreme shareholders."

Under the terms of the transaction, Krispy Kreme will continue to be independently operated out of its current headquarters in Winston-Salem, NC. 

Separately, TheStreet Ratings currently has a "Buy" rating on the stock with a letter grade of B.

The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. We feel its strengths outweigh the fact that the company shows low profit margins.

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 article's author.

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

Image placeholder title