Marshalls has raised £187m in an accelerated bookbuild, to help fund a more than £500m acquisition by the landscaping materials business.
The capital raise offered nearly 29m shares for some 650p apiece and represented 11.4 per cent of its enlarged share capital.
The takeover of the Marley Group, from Inflexion Buyout V Investments, will cost the materials firm £535m.
Marley, a roofing manufacturer, is expected to enhance Marshalls market offering, as well as value for shareholders.
Marshalls will pay £371m in cash and offer up the funds raised in its latest capital raise, which was announced yesterday alongside the acquisition.
Numis Securities and Peel Hunt acted as joint bookrunners on the share placing.
Chief financial officer Justin Lockwood also announced his intention to snap up some £50,000 worth of shares.
Marshalls boss Martyn Coffey said: “The acquisition of Marley represents a significant step towards achieving our strategic goal to become the UK’s leading manufacturer of products for the built environment.
“Marley is a highly profitable business with established market positions across UK RMI and new build housing. Much like Marshalls, its position is underpinned by a track record of product quality and customer service, and we believe Marley will represent a strong cultural fit with our own business.”