Private equity buys Mitie for £3.1bn in latest London market exit
The £3.1bn takeover of Mitie by rival OCS continues the exodus of major contractors from the London stock market despite government hostility to the outsourcing model.
Mitie has agreed to a £3.1bn cash takeover by private-equity backed rival OCS Group, ending nearly four decades as a publicly traded company. The government contractor’s board recommended shareholders accept an offer of 221.6p a share, representing a 44.7% premium to Monday’s closing price.
Mitie shares surged 41% to a record 213.6p on Tuesday morning. The deal marks the latest departure from a London stock market that has seen Intertek, easyJet, Beazley and Schroders agree to takeovers this year, while US group Prologis has repeatedly targeted FTSE 100 rival Segro.
OCS is owned by Clayton, Dubilier & Rice, the private equity firm that acquired supermarket chain Morrisons in 2021. By combining OCS’s 135,000 staff with Mitie’s 84,000-strong workforce, the buyer intends to create a dominant facilities management group operating across the UK, Europe, Asia Pacific and the Middle East.
The acquisition arrives at a fraught moment for the UK outsourcing sector. For investors, the premium offers a lucrative exit from an industry facing existential questions from its primary customer. Last month, the Cabinet Office declared the "age of outsourcing is over", and the since-departed chancellor, Rachel Reeves, outlined plans for "the biggest wave of insourcing of public services for a generation".
Mitie relies heavily on government contracts across defence, health and immigration for services like cleaning and security. Despite the political headwinds, OCS chief executive Rob Legge framed the deal as a national asset. "We would build a British facilities management group that is better positioned to support the organisations that keep the country running," he said.
Mitie chief executive Phil Bentley, who announced last month he will leave in March 2027 after a decade in the role, argued the tie-up offers scale. "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," he said.
The transaction, expected to close in the first quarter of 2027, faces operational risks. Earlier this month, Mitie launched an investigation into allegations of racism, antisemitism, Islamophobia and hate speech among staff working in its immigration removal centres. A company spokesperson said it takes the allegations seriously and plans a thorough investigation.
