The Mitie OCS takeover will value the FTSE-listed facilities management group at approximately £3.1bn, with OCS Group making a recommended cash offer of 218.5p per share plus a final dividend of up to 3.1p, giving total consideration of up to 221.6p per share.
Mitie shares rose 38% on the news. The 218.5p cash component alone represents a 44.7% premium to Monday’s closing price of 151p; when the dividend is included, Reuters and The Guardian calculate the premium at 46.8% against the same close. The cash price also sits 17.7% above Mitie’s all-time high of 185.7p, reached in April.
What the Mitie OCS Takeover Means for the Combined Business
The deal would bring together two UK-headquartered businesses with combined revenues of around £8.5bn. OCS, which employs 135,000 staff across the UK, Europe, Asia Pacific and the Middle East, is owned by private equity group Clayton, Dubilier & Rice, according to The Guardian. The same firm owns the Motor Fuel Group and acquired supermarket chain Morrisons in 2021.
The combined group would be one of the UK’s largest private sector employers, with operations spanning government, defence, healthcare, national infrastructure and commercial markets. Reuters reports that Mitie counts Microsoft and Google among its clients and provides mechanical, electrical, cooling and security systems for hyperscalers.
The transaction is structured as a Scottish court-sanctioned scheme of arrangement and is expected to complete in the first quarter of 2027, according to Morningstar/Alliance News. Mitie has published a Rule 2.7 Firm Offer announcement on its investor relations page in connection with the offer.
OCS has secured irrevocable acceptances from Mitie board members covering 1.2% of Mitie shares. A further 9.9% potential stake has been committed by Oasis Management Co Ltd, which holds swaps over Mitie shares. Mitie chief executive Phil Bentley, who had planned to retire by March 2027, will remain with the company until completion, Reuters reported.
Buyback Suspended as Q1 Trading Beats Expectations
The bid prompted Mitie to suspend its £100m share buyback programme immediately. Launched last October, the programme had repurchased 49 million shares for £81m before being halted, Morningstar/Alliance News reported.
The deal was announced alongside a first-quarter trading update. Revenue rose 10% to £1,406m in the three months to 30 June, including 4% organic growth driven by new contract wins, projects and pricing, partly offset by a 2% drag from prior-year Technical Services contract losses.
Contract wins and renewals jumped 33% to £1.6bn of total contract value. The bidding pipeline reached a record £32.5bn, with more than 70% due to be awarded within 18 months.
The transaction will end Mitie’s listing in London, adding to the attrition of the UK equity market. According to City A.M., the bid ranks as the eighth most valuable live or completed offer for a UK-listed company in 2026. The total value of live or completed bids this year could reach £69.3bn if all complete as planned, equivalent to 2.4% of the combined market capitalisation of the FTSE All-Share and AIM All-Share indices.
The scheme requires court sanction and shareholder approval. The first court hearing date and a shareholder vote timetable have not yet been disclosed; both will need to clear before the expected Q1 2027 close.
