Man Wah (HKG:1999) said it acquired upholstery furniture seller Gainline Recline Intermediate for $58.7 million, according to a Hong Kong bourse filing Thursday.

Shares of the sofa seller gained nearly 2% in morning trade Friday.

The purchase price was made up of $32 million paid to the seller, and the assumption of nearly $28 million in debt, of which the company has already repaid $26.7 million.

The remaining $1.3 million will be repaid using Gainline's available cash on hand, Man Wah said.