Buy-out firm Cinven is to acquire services company Spice for £251.1 million.

European buy-out firm Cinven is to acquire support services company Spice for around £251.1 million.

The acquisition, which is subject to shareholder approval, was made through Cilantro Acquisitions, a company formed by Cinven.

Pascal Heberling, a director of Cilantro Acquisitions, says: ‘In addition to Cinven’s sector expertise, Spice will also benefit from significant additional funds which will enhance its ability to grow organically and through acquisitions, as well as accelerate the development of its international capabilities.’

Leeds-based Spice is an infrastructure support company providing outsourcing services to the utilities sector. The AIM-listed company was founded in 1996 and in the year to April 2010 declared a pre-tax profit of £31.5 million on a turnover of £310.7 million.

Founded in 1997, London-based Cinven and has offices in Paris, Frankfurt, Milan and Hong Kong. The company acquires European-based businesses that require an equity investment of €100 million (£85.6 million) or more in sectors including Healthcare and Financial Services.