Mitie, a major outsourcing firm specializing in facilities management and government contracting, has accepted a takeover offer from OCS Group valued at £3.1bn. The board of Mitie recommended that shareholders approve the cash offer of 221.6p per share, representing a premium of 44.7% to the previous trading day’s closing price. The transaction would mark the end of Mitie’s tenure as a London-listed company, a status it has maintained for nearly four decades since its establishment in 1987.
Mitie operates across multiple sectors including defence, health, and immigration services, employing 84,000 staff and providing services ranging from security and cleaning to engineering maintenance and hygiene solutions. OCS, owned by private equity firm Clayton, Dubilier & Rice, operates internationally across the UK, Europe, Asia Pacific, and the Middle East with a workforce of 135,000 employees. Clayton, Dubilier & Rice has built a diversified portfolio that includes the Motor Fuel Group petrol station chain and acquired supermarket operator Morrisons in 2021.
Rob Legge, chief executive of OCS, stated that the combined entity would create a stronger British facilities management group better positioned to serve customers that provide essential services across the country. He emphasized the opportunity to invest in employees, technology, and services while supporting both existing and new customers. Mitie’s departing chief executive Phil Bentley, who announced last month his intention to leave in March 2027 after more than a decade in the role, indicated that the merger would provide a larger platform for growth and investment.
The acquisition is expected to close in the first quarter of 2027 and represents the latest in a series of significant takeovers affecting London-listed companies this year, including Intertek, easyJet, Beazley, and Schroders. Share prices for Mitie climbed significantly on the announcement, rising 41% to a record high of 213.6p. The deal arrives amid broader scrutiny of outsourcing practices, following recent government statements about reducing reliance on contracted services and planning increased direct provision of public services.