Mitie, the British outsourcer, has agreed to a £3.1bn takeover by its private-equity owned rival OCS Group, ending nearly four decades on the stock market and becoming the latest London-listed company to be acquired this year.
Deal Details and Premium
On Tuesday, the government contractor said its board has recommended that shareholders accept a cash offer of 221.6p a share, representing a 46.8% premium to Monday’s closing price. Mitie, founded in 1987 and employing 84,000 staff, specializes in facilities management, including engineering maintenance, hygiene, and security services.
Leadership and Ownership
Mitie's longstanding chief executive, Phil Bentley, announced last month he would leave in March 2027 after more than 10 years in the role. OCS, which operates across the UK, Europe, Asia Pacific, and the Middle East with 135,000 staff, is owned by private equity group Clayton, Dubilier & Rice. The firm also owns the Motor Fuel Group petrol station company and acquired supermarket chain Morrisons in 2021.
Government Contracts and Industry Impact
Mitie holds contracts across government and industries including defence, health, and immigration, providing security and cleaning services. Rob Legge, OCS chief executive, said: “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.”
Bentley added: “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.”
Market Reaction and Political Context
The deal, expected to complete in the first quarter of 2027, is the latest in a string of takeovers on London’s stock market, including Intertek, easyJet, Beazley, and Schroders. Mitie shares surged 41% to a record high of 213.6p on Tuesday. Last month, shares in outsourcers fell after the Cabinet Office declared the “age of outsourcing is over”. Former chancellor Rachel Reeves said the government plans “the biggest wave of insourcing of public services for a generation”.
Allegations Investigation
Earlier this month, the Guardian revealed Mitie had launched an investigation into allegations of racism, antisemitism, Islamophobia, and hate speech among staff working in immigration removal centres. A Mitie spokesperson said at the time it took the allegations seriously and planned to investigate them thoroughly.
