OCS Group to acquire Mitie for £3.1 billion in cash deal

OCS Group's £3.1 billion acquisition of Mitie creates the U.K.'s largest private facilities management company.

OCS Group International agreed to acquire Mitie Group for £3.1 billion, taking the FTSE 250 outsourcer private in a deal that consolidates the U.K. facilities management sector under private equity ownership.

"We have made a good start to the year, maintaining double-digit growth despite the impact of contract losses last year," Phil Bentley, chief executive officer of Mitie, said in a statement. The CEO pointed to a strengthening order book and the rollout of agentic AI as drivers of above-market growth.

Under the terms, OCS will pay 218.5 pence per Mitie share in cash, plus a 3.1 pence dividend, for a total consideration of 221.6 pence per share. Mitie shares surged 39.6 percent to 210.80 pence on Tuesday, reflecting the premium embedded in the offer. The deal values Mitie at roughly 14 times trailing earnings.

The acquisition marks the latest wave of consolidation in the U.K. outsourcing industry, where rising labor costs, regulatory complexity, and margin compression have pushed mid-tier players to seek scale. OCS, owned by Clayton, Dubilier & Rice since 2022, gains a combined workforce exceeding 150,000 employees across security, cleaning, and engineering services — giving the combined entity the capacity to compete for larger government and corporate contracts.

Mitie separately reported first-quarter results alongside the deal announcement, posting a 10 percent rise in revenue to £1.40 billion from £1.28 billion a year earlier. The growth outpaced the broader U.K. facilities management market, which expanded at roughly 2 percent to 3 percent. Organic growth contributed 4 percent, driven by new contract wins and pricing, while the prior-year acquisition of Marlowe added the remainder.

Contract wins, extensions, and renewals rose 33 percent to £1.6 billion in total contract value, up from £1.2 billion a year earlier. The company's bidding pipeline reached a record £32.5 billion, with more than 70 percent expected to be awarded within the next 18 months. Client retention improved to 91 percent from 86 percent.

The company suspended its £100 million share buyback program with immediate effect. The program, launched in October 2025, had purchased 49 million ordinary shares at a cost of £81 million to date. Closing net debt stood at £477 million, up from £450 million at the end of the fiscal year.

Deal Structure and Timeline

The acquisition is expected to close in the first quarter of 2027, subject to regulatory approvals. Mitie will be delisted from the London Stock Exchange upon completion. OCS, backed by Clayton, Dubilier & Rice, did not disclose the financing structure for the deal.

The transaction removes one of the few remaining publicly traded U.K. outsourcers from public markets, following a trend of consolidation that has seen companies such as Capita and Serco restructure or divest operations in recent years. For Mitie shareholders, the cash offer provides an exit at a premium to a stock that had traded below 160 pence as recently as early 2025.

This article is for informational purposes only and does not constitute investment advice.