Mitie agrees £3.1bn takeover by OCS in blow to London stock market

The outsourcer Mitie has agreed to a £3.1bn takeover by its private-equity owned rival OCS Group, ending nearly four decades on the stock market and making it the latest London-listed company to be acquired this year.On Tuesday, the government contractor said its board has recommended that shareholders accept a cash offer of 221.6p a share, a 44.7% premium to Monday’s closing price.Mitie, which was founded in 1987 and employs 84,000 staff, specialises in facilities management, such as engineering maintenance and other services such as hygiene and security.Its longstanding chief executive, Phil Bentley, announced last month that he would leave in March 2027 after more than 10 years in the top job.OCS, which operates across the UK, Europe, Asia Pacific and the Middle East and has 135,000 staff, is owned by the private equity group ​Clayton, Dubilier & Rice, which owns the Motor Fuel Group petrol station company and acquired the supermarket chain Morrisons in 2021.Mitie has contracts across government and a string of industries including defence, health and immigration providing services such as security and cleaning.Rob Legge, the 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.“While there is a long process ahead, both businesses remain focused on supporting customers and delivering the high standards they expect every day. Together, we can build something remarkable for our colleagues, our customers and the country.”Bentley said: “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.”The deal, which is expected to complete in the first quarter of 2027, is the latest in a long string of takeovers on London’s stock market – Intertek, easyJet, Beazley and Schroders have agreed to takeovers this year, while the US property group Prologis has made repeated attempts to buy its FTSE 100 rival Segro.skip past newsletter promotionafter newsletter promotionMitie shares have shot up 41% this morning to a record high of 213.6p. Last month, shares in outsourcers fell as the Cabinet Office said the “age of outsourcing is over”. The since departed chancellor, Rachel Reeves, said the government is planning “the biggest wave of insourcing of public services for a generation”.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.