NEW YORK (TheStreet) -- Krispy Kreme Doughnuts (KKD)  shares continue to gain, up 0.27% to $21.02 on Tuesday, extending yesterday's advance following the announcement that JAB Beech is buying the doughnut chain for about $1.35 billion. 

JAB Beech is a subsidiary of JAB Holding, a European investment fund that owns several brands including Keurig Green Mountain, Peet's Coffee & Tea and Caribou Coffee.

This deal takes the doughnut maker private after 16 years as a public company, the Wall Street Journal reports.

During the announcement, 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."

After the deal closes, Krispy Kreme will continue to operate independently out of its current headquarters in Winston-Salem, NC.

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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

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