OCS Group has agreed a £3.1 billion cash swoop for fellow facilities management giant Mitie, a member of the FTSE 250 index.
Ipswich-headquartered OCS, backed by private equity firm Clayton, Dubilier & Rice (CD&R), said the deal – expected to complete in Q1 2027 – would create a combined business with £8.5bn revenue.
The deal will require the approval of at least 75% of Mitie’s shareholder base.
The agreement values each Mitie share at up to 221.6 pence in cash, including a final dividend, and represents a premium of 46.8% to its closing price of 151p yesterday.
The firms stated that an enlarged group would be better placed to serve and safeguard some of the UK’s most complex and critical built environments across government, defence, healthcare, national infrastructure and commercial markets.
It would also create more capacity for investment in technology and operations, they said.
“Both businesses recognise the role that technology-enabled solutions, including data and artificial intelligence, play in front-line service delivery and operational excellence,” they stated, adding that the combined business would “provide a stronger platform for continued investment in data and technology-enabled solutions”.
Mitie is headquartered in London and has bases in Northampton, Glasgow and Birmingham, as well as Ireland and Spain.
“Today’s announcement is a testament to everything we have achieved at Mitie in recent years – especially the talent and expertise of our people, and in the business we have built together as well as its future potential,” said Phil Bentley, CEO of Mitie.
“This recommended offer reflects the strength of Mitie’s brand, capabilities and reputation, and delivers value for our shareholders. 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, and to do even more for the customers and communities we support.
“There is a process still to run and much to work through. Until completion it is business as usual, and our focus stays firmly on delivering safely and reliably for our customers every day.”
Rob Legge, CEO of the OCS Group, said: “This is an important milestone for both organisations and an exciting opportunity to bring together two highly complementary businesses with a shared commitment to delivering the best outcomes for colleagues and customers.
“Subject to completion, we would build a British facilities management group that is better positioned to support the organisations that keep the country running. Together, we can better support existing and new customers, help more people into work and strengthen our contribution to getting Britain moving.
“While there is a long process ahead, both businesses remain focused on supporting customers and delivering the high standards they expect every day. Together, we can build something remarkable for our colleagues, our customers and the country.”