NEW YORK (TheStreet) -- Shares of Mattress Firm (MFRM) were skyrocketing 114.16% to $63.69 before Monday's market open after African furniture seller Steinhoff (SNHFY) agreed to buy the Houston-based mattress company for $2.4 billion, or $64 per share, the Wall Street Journal reports.
Steinhoff's offer represents a 115% premium over Mattress Firm's previous closing price.
The African retailer said the deal would "create the world's largest multi-brand mattress retail distribution network," according to the Journal. This is Steinhoff's first entry into the U.S. market.
Mattress Firm is the largest U.S. specialty mattress retailer, operating 3,500 stores nationwide and franchising another 48.
Earlier in February, Mattress Firm acquired rival Sleepy's for $780 million.
The company's deal with Steinhoff is expected to close in the third quarter.
Over 811,000 shares of Mattress Firm stock have traded so far on Monday, higher than the 30-day daily average of 252,000 shares.
Separately, 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.
TheStreet Ratings rated this stock as a "sell" with a ratings score of D+.
The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, poor profit margins and weak operating cash flow.
You can view the full analysis from the report here: MFRM