Mitie Agrees 3.1 Billion Pound Takeover by OCS in Blow to London Stock Market

Mitie has accepted a £3.1 billion takeover offer from private equity-backed rival OCS Group, bringing an end to nearly four decades as a publicly listed company and adding to the growing list of departures from the London stock exchange this year.

The board of the government contractor announced on Tuesday that it has recommended shareholders accept a cash offer of 221.6 pence per share, representing a premium of 46.8 per cent to the previous day’s closing price. Founded in 1987, Mitie employs 84,000 staff and specialises in facilities management services including engineering maintenance, hygiene and security provision.

The company’s long-serving chief executive, Phil Bentley, announced last month his intention to step down in March 2027 after more than a decade in the role. OCS Group, which operates across the United Kingdom, Europe, Asia Pacific and the Middle East with 135,000 employees, is owned by private equity firm Clayton, Dubilier & Rice. The investment house’s portfolio includes Motor Fuel Group and supermarket chain Morrisons, acquired in 2021.

Mitie maintains contracts across government departments and numerous sectors including defence, health and immigration, providing services such as security and cleaning. Rob Legge, chief executive of OCS, stated the combination would create a British facilities management group better positioned to support organisations across the country. He emphasised the potential to serve existing and new customers more effectively whilst contributing to employment and economic growth.

Bentley commented that membership of a larger group with broader geographical reach would provide Mitie with an enhanced platform for investment in personnel, technology and services. The transaction is anticipated to complete during the first quarter of 2027.

This acquisition represents the latest in an extensive series of takeovers affecting London’s equity markets. Intertek, easyJet, Beazley and Schroders have all agreed to takeovers during the current year, whilst US property group Prologis has made repeated approaches for FTSE 100 constituent Segro.

Mitie shares rose 41 per cent to reach a record high of 213.6 pence following the announcement. Last month, the outsourcing sector experienced share price declines after the Cabinet Office declared that “the age of outsourcing is over”. The then chancellor, Rachel Reeves, outlined plans for what she described as “the biggest wave of insourcing of public services for a generation”.

Earlier this month, reports emerged that Mitie had initiated an investigation into allegations of racism, antisemitism, Islamophobia and hate speech among staff working in immigration removal centres. A company spokesperson confirmed at the time that the allegations were being taken seriously and would be investigated thoroughly.

The transaction underscores continuing pressure on London’s equity market as private equity firms and overseas acquirers target publicly listed British companies trading at what many consider discounted valuations. The premium offered by OCS reflects both strategic value and the operational synergies anticipated from combining two significant players in the facilities management sector.