Investors provide massive backing to Spice takeover

The twice-improved offer by Cilantro Acquisitions, Cinven's newly-formed acquisition company, had been recommended by Spice's independent directors.

Yesterday it was revealed that a special resolution to support the cash acquisition was supported by 99.6 per cent of Spice shareholders.

In a letter to shareholders last month, the Leeds-based firm said the 70p per share offer, which values Spice at 251.1m, "provides an attractive combination of value and certainty... and reflects the prospects of Spice".

The directors argued that, under Cinven's wing, Spice would have significant access to funds to grow, both organically and through acquisition.

The directors also highlighted the fact that Spice's international ambitions, which include expanding into the United States, would be accelerated under Cinven's ownership.

As a result of the deal winning shareholder approval, Spice's 14 years of independence will soon end.

It was founded in 1996 by former chief executive Simon Rigby through a management buyout from Yorkshire Electricity with a single 3m contract.

Spice's work ranges from checking overhead power lines to installing water meters.

Cinven has given assurances the employment and pension rights of staff will be safeguarded under the deal.

It is expected that the last day for dealings in Spice shares will be December 1.

Last month, Spice secured an extension to a contract with EDF Energy for the maintenance of building and civil assets.