Mitie has agreed to be acquired by rival outsourcer OCS Group in a deal valued at approximately £3.1 billion, marking the latest in a series of UK-listed companies to exit the stock market. The company, which provides services such as security and cleaning to both public and private sectors, announced it had accepted an offer from OCS Group.
Deal Terms and Shareholder Value
Under the terms of the agreement, each Mitie shareholder will receive up to 221.6p per share, comprising cash and dividends. This represents a premium of nearly 45% on Mitie's closing share price of 151p on Monday. Mitie stated that the deal, contingent on a final dividend being paid in full, values its share capital at around £3.1 billion.
Strategic Rationale and Combined Operations
Mitie said it agreed to the acquisition by another UK-based business to accelerate growth and expand opportunities in the services market. OCS Group offers a broad range of services, including security, cleaning, catering, pest control, engineering, and energy management. With over 135,000 employees worldwide, OCS operates across the UK, Europe, Asia, and the Middle East. The acquisition will absorb Mitie's workforce of approximately 84,000 as of the end of March, along with its existing partnerships and contracts. These include contracts with various government departments for security and facilities management, the NHS for catering, cleaning, and portering, and services for some of the UK's largest train stations and airports.
Growing Trend of UK Companies Going Private
The takeover adds Mitie to a rapidly expanding list of listed companies that have agreed to take their shares off the London Stock Exchange and into private ownership this year. Notable examples include easyJet, Rotork, Intertek, Tate & Lyle, William Hill owner Evoke, and Beazley.
Executive Comments
Phil Bentley, Mitie's chief executive, said: “This recommended offer reflects the strength of Mitie’s brand, capabilities and reputation, and delivers value for our shareholders. As part of a larger group with a wider geographical footprint, Mitie would have an even stronger platform to invest in our people, technology and services, and to do even more for the customers and communities we support.”
Rob Legge, chief executive of OCS Group, said: “Subject to completion, we would build a British facilities management group that is better positioned to support the organisations that keep the country running. Together, we can better support existing and new customers, help more people into work and strengthen our contribution to getting Britain moving.”
Timeline and Approvals
The companies anticipate that the acquisition will be completed during the first three months of 2027, pending approval from shareholders and the court. The Competition and Markets Authority (CMA) has also launched an investigation into the outsourcing firm Mitie Group.
