The UK-based outsourcer Mitie has accepted a £3.1 billion takeover offer from OCS Group, marking its exit from the London stock market after nearly 40 years. The deal, announced on Tuesday, includes a cash offer of 221.6 pence per share, representing a 44.7% premium over Mitie's closing price on Monday, according to the company.
Key Details
Mitie, founded in 1987, employs approximately 84,000 staff and specializes in facilities management, providing services such as engineering maintenance, hygiene, and security. The company holds contracts across various sectors, including government, defense, health, and immigration. OCS Group, which has 135,000 employees and operates in the UK, Europe, Asia Pacific, and the Middle East, is owned by private equity firm Clayton, Dubilier & Rice.
Rob Legge, chief executive of OCS, stated,
We would build a British facilities management group that is better positioned to support the organisations that keep the country running.
He emphasized the potential for both companies to enhance their service offerings and support for customers.
Background
Phil Bentley, Mitie's chief executive, who is set to depart in March 2027, noted that joining a larger group would provide Mitie with a stronger platform to invest in its workforce and technology. The acquisition is expected to complete in the first half of 2024, pending regulatory approvals.
The acquisition of Mitie by OCS Group may lead to increased consolidation in the facilities management sector, potentially affecting stock valuations of similar companies. Investors will watch for regulatory developments and the finalization of the deal in early 2024.