An international acquisition for stationery stalwart, WH Smith, has seen its shares jump as high as 8.4% on Thursday.

WH Smith has snapped up Las Vegas-based Marshall Retail Group for £312 million, and the news had sent share prices up to 2,258p.

The stationer has been described as ‘a tale of two businesses’ by Brewin Dolphin, because of its strong growth in its travel division contrasted against flat high street sales. So, could this latest acquisition boost the chain’s share price even further?

The high street staple has taken a different tack in recent years to negate the tough climate of conventional retail sales. It has diversified into travel sales, with 1,019 units in UK train stations and airports, and the strategy has had some success. It expects its high street revenue to fall by two per cent this year, but its travel division grew by 22 per cent to £817 million in the period to the end of August. Airport revenue jumped up 5%, which bodes well for the acquisition of MRG, as 59 of its 170 sites are in US airports. The retailer has also carved a niche for itself with stores in UK hospitals and this division has performed well too, despite criticism about inflated prices and unhealthy food, with sales up 12 per cent for the year.

A huge factor in WH Smith’s diversification strategy was its decision to snap up travel accessories business InMotion last year for £155 million. The US retailer is said to have already performed ahead of expectations, winning 75% of all pitches it went for equalling a pipeline of 36 new store contracts.

Analysts and investors alike seem to have bought into WH Smiths ambition to swiftly accelerate its global travel sector growth, with Peel-Hunt describing the acquisition as ‘completely transformative.’ Some have raised concerns about the forthcoming management switch though – Stephen Clarke will step down as the retailer’s Chief Executive in November, to be replaced by Carl Cowling, and its been noted that this switch at the same time as such a substantial transaction could increase the group’s risk profile.

The consensus seems to be that shares in WH Smith, which started out as a family-run newsagent, could continue to fly high. Peel-Hunt described the stock as ‘materially undervalued, describing the MRG acquisition as ‘bold and strategically sensible’ and issuing a ‘buy rating’ Some have noted though, that the retailer is still pricey trading at 18.2 times forward earnings. However, its pay-out has risen regularly, analysts expect earnings to rise 10 per cent next year and in its preliminary annual results, WH Smith said it had upped its dividend by eight per cent. This latest acquisition certainly fits with WH Smiths global ambition – could it be the final piece in the puzzle to keep share prices flying high?