Utility support services firm Spice plc has bought Redbridge Management Services (RMS) for an initial £3.1 million, strengthening its infrastructure engineering-support offering.

The deal amount, paid in cash from existing resources, represents a multiple of six times adjusted operating profit for the year ended May 2007. A deferred consideration of up to £1 million will be available dependant on RMS’s financial performance in the 12 months ending 28 November next year.

RMS posted a turnover of £6.8 million and adjusted operating profits of £500,000 for the year ended this June, with net assets at £800,000. The company employs 68 people and was established in April 2001 by its directors Mark and Sarah Bruce.

KBC Peel Hunt acted as nomad to Spice. KBC’s team was led by director of corporate finance Julian Blunt, who told M&A: “As there was no shareholder approval required our involvement was minimal and the deal wrapped up quickly.”