Lord Ashcroft to Receive £67m from Marlowe Sale to Mitie

Lord Ashcroft, the billionaire investor and former Conservative Party treasurer, is set to gain £67 million following the acquisition of Marlowe by Mitie, a larger competitor. The deal consists of £44 million in cash along with £23 million in new Mitie shares. The transaction marks a significant exit for Ashcroft, who holds an 18.9 per cent stake in Marlowe, of which he serves as chairman.

Marlowe, a leading provider of testing, inspection, and certification services, includes major clients such as Boots, Tesco, and Walkers Crisps. The acquisition, valued at approximately £350 million, offers 290p per share in cash plus 1.1 Mitie shares per Marlowe share. Shares of Marlowe rose by 6.6 per cent after the agreement, closing at 433p. However, Mitie shares fell by 13.2 per cent to 138p due to concerns over share dilution caused by the issuance of new stock to fund the deal.

In a statement, Ashcroft, aged 79, described the deal as offering “excellent value” to shareholders. He noted that since taking up the position of interim chairman in June 2024, his objective was to maximise returns for Marlowe investors. He sees this transaction as a culmination of his efforts to achieve that goal.

Ashcroft initially invested in Marlowe after being approached by Alex Dacre, the son of Paul Dacre, editor-in-chief of the Daily Mail’s parent company, DMG Media. The younger Dacre had previously worked within Ashcroft’s related ventures, including the firms Restore and Impellam. Ashcroft had previously realised £300 million from the sale of Impellam in 2023 and maintains a 24.6 per cent stake in Optima Health, an employee health service company spun off from Marlowe.

Under the agreed terms, shareholders of Marlowe will vote on the Mitie offer in a meeting expected next month. Should the deal proceed, Ashcroft will hold 16.8 million Mitie shares. Based on Mitie’s 2024 dividend performance, this position is estimated to yield him an annual return of £720,000 in dividends.

Ashcroft highlighted his ongoing interest in future ventures and assured shareholders of his commitment to investing in opportunities that create dynamic returns. He expressed confidence in shareholder support as he continues to explore other business undertakings post-Marlowe.