Mitie to be taken over by rival OCS Group in £3.1bn deal

21st Jul 2026 07:42

(Sharecast News) - Outsourcing and energy services firm Mitie said on Tuesday that it has agreed to be bought by rival OCS Group in a £3.1bn deal.

Under the terms of the agreement, OCS - which is owned by private equity firm Clayton, Dubilier & Rice - will pay up to 221.6p per share. This is comprised of 218.5p in cash and a final dividend of 3.1p per share for the year to the end of March 2026. It represents a premium of around 46.8% to the closing Mitie share price on Monday.

Mitie chief executive Phil Bentley said: "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. 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."

News of the takeover came alongside a first-quarter trading update from Mitie, which showed that revenue rose 10% to £1.4bn. This includes 4% organic growth driven by new wins, projects and pricing.

The company also hailed a record £32.5bn bidding pipeline, up from £31.7bn at the end of FY26, with more than 70% due to be awarded in the next 18 months.

Bentley said: "I am pleased we have made a good start to the year, maintaining double-digit growth despite the impact of contract losses last year. Wins and renewals in the period were stronger than last year and will continue to improve with the new management team in Technical Services and the strength of our integrated, technology-led service proposition."

At 0950 BST, the shares were up 39% at 209.68p.

Dan Coatsworth, head of markets at AJ Bell, said: "Where there's muck, there's brass. Investors who bought shares in Mitie during its darkest days post-Covid stand to walk away with a handsome return. The cleaning company has received a 218.5p per share bid, which is nearly eight times what anyone who bought at the low would have paid in October 2020.

"Mitie's turnaround has been truly impressive. The company has worked hard to broaden its interests into higher-value services, improve the group's financial strength, and embrace technology to provide more data-driven insights. It has made the company more relevant for the modern age.

"Despite a solid share price run, the market still hasn't lavished the stock with a substantially higher rating. The shares have been driven by earnings growth, not a valuation re-rating.

"On the eve of the takeover bid Mitie traded just under 10 times forward earnings. It's a classic case of the market not recognising the strategic progress and fundamentally undervaluing the group, leaving it vulnerable to a bid.

"Facilities management rival OCS spotted an opportunity and pounced with an offer that might seal the deal. Pitched at a 45% premium to the undisturbed price, the bid is a touch over the 43% blended average premium for all UK-listed takeovers this year, according to AJ Bell research."

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