NEW YORK (TheStreet) -- Mattress Firm (MFRM) shares are up 9.6% to $62.27 on Thursday after the company announced that it has agreed to acquire rival Sleep Train for $425 million in a deal that adds to the mattress manufacturer's lead as the countries largest mattress retailer.
The acquisition boosts Mattress Firm's presence on the West Coast as Sleep Train operates 310 specialty mattress stores in the western U.S.
Mattress Firm operates 1,480 stores in 36 states with annual revenue expected to approach $2 billion this year, while Sleep Train generated $471 million in revenue in 2013.
In separate news, the company reported second quarter earnings of 61 cents per diluted share, 1 cent better than analysts were expecting, on revenue of $410 million that was in line with analysts expectations.MFRM data by YCharts
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE.