Facilities management giant OCS has agreed a recommended £3.1bn cash takeover of rival Mitie to create one of the UK’s biggest outsourced services groups with combined annual revenues of around £8.5bn.
Under the terms of the deal, Mitie shareholders will receive 218.5p a share in cash and retain the planned 3.1p final dividend, valuing the offer at up to 221.6p a share.
The bid represents a 47% premium to Mitie’s closing share price on Monday and values the business at £3.1bn on a fully diluted basis.
The enlarged business will employ more than 219,000 people worldwide and combine OCS’s £3.3bn international operations with Mitie’s UK market-leading engineering maintenance, security, hygiene and compliance businesses.
OCS, which has been owned by private equity investor Clayton, Dubilier & Rice since 2022, said the takeover would strengthen its position in government, defence, healthcare, national infrastructure and commercial markets while creating greater scale to invest in technology, data and artificial intelligence.
The deal continues OCS’s rapid expansion following its acquisitions of engineering hard FM contractors FES in 2024 and EMCOR UK last year.
Mitie’s board has unanimously recommended the offer, saying it delivers immediate value for shareholders while providing the business with greater long-term investment capacity.
Mitie chief executive Phil Bentley will remain in post until completion before stepping down, while OCS group chief executive Rob Legge will lead the enlarged business.
OCS said it did not expect any material reduction in frontline operational staff, although some overlapping head office and listed company functions are likely to disappear after integration. The combined group will retain headquarters functions in central London alongside OCS’s main UK operational office in Ipswich.
The takeover is expected to complete in the first quarter of 2027, subject to shareholder approval, Competition and Markets Authority clearance and national security approvals.
Facilities management giant OCS has agreed a recommended £3.1bn cash takeover of rival Mitie to create one of the UK’s biggest outsourced services groups with combined annual revenues of around £8.5bn.
Under the terms of the deal, Mitie shareholders will receive 218.5p a share in cash and retain the planned 3.1p final dividend, valuing the offer at up to 221.6p a share.
The bid represents a 47% premium to Mitie’s closing share price on Monday and values the business at £3.1bn on a fully diluted basis.
The enlarged business will employ more than 219,000 people worldwide and combine OCS’s £3.3bn international operations with Mitie’s UK market-leading engineering maintenance, security, hygiene and compliance businesses.
OCS, which has been owned by private equity investor Clayton, Dubilier & Rice since 2022, said the takeover would strengthen its position in government, defence, healthcare, national infrastructure and commercial markets while creating greater scale to invest in technology, data and artificial intelligence.
The deal continues OCS’s rapid expansion following its acquisitions of engineering hard FM contractors FES in 2024 and EMCOR UK last year.
Mitie’s board has unanimously recommended the offer, saying it delivers immediate value for shareholders while providing the business with greater long-term investment capacity.
Mitie chief executive Phil Bentley will remain in post until completion before stepping down, while OCS group chief executive Rob Legge will lead the enlarged business.
OCS said it did not expect any material reduction in frontline operational staff, although some overlapping head office and listed company functions are likely to disappear after integration. The combined group will retain headquarters functions in central London alongside OCS’s main UK operational office in Ipswich.
The takeover is expected to complete in the first quarter of 2027, subject to shareholder approval, Competition and Markets Authority clearance and national security approvals.
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