Spice is looking at end of November for market de-listing

In a letter to shareholders, the Leeds-based utilities support services 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 twice-improved offer by Cilantro Acquisitions, Cinven's newly-formed acquisition company, has been recommended by Spice's independent directors.

Shares in Spice ticked up 0.36 per cent to 69.75p yesterday.

Under Cinven's wing Spice will have significant access to funds to grow, both organically and through acquisition, said the directors. Spice's international ambitions, which include expanding into the United States, will be accelerated under Cinven's ownership.

Shareholders will vote on the takeover at a meeting in London on November 4. It is likely shares in Spice will then be de-listed on November 30, and the scheme of arrangement become effective on December 2.

Should the deal win shareholder approval, Spice will end 14 years of independence. 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.

The offer will need the support of 75 per cent of voting shareholders to go through. The takeover already has the support of investors holding 28.5 per cent of Spice's shares.

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