Office service provider Restore Plc (LON:RST) bought a record management business for £83.1mln and launched a £35mln placing to fund the deal, boosting its shares.
Restore said it was buying PHS Data Solutions from Personnel Hygiene Solutions Limited and issuing 12,143,632 shares at 290p per share to new and existing investors.
It plans to use about £27.7mln from the oversubscribed placing for the deal and to draw down an extra £48.5mln of debt on the same terms as its existing facilities.
PHS Data Solutions is the second largest provider of document shredding services in the UK as well as having a significant records management business and a presence in document scanning.
Meanwhile, Restore said trading in the first six months of this year was encouraging and in line with hopes.
Restore's records management business traded well and the integration of Wincanton Records Management continues to proceed to plan.
Shares in Restore rose 31.5p, or nearly 11%, to 319.5p.
Russ Mould at AJ Bell said: "A week after one of its removal vans was spotted outside No.10 as the Cameron family packed their bags, Restore gets its teeth into the £83.1mln acquisition of shredding and document storage business PHS Data Solutions.
"Analysts believe it will give a major boost to Restore’s profits and investors certainly like the news."