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OCS is acquiring Mitie. This coming together of the two facilities management (FM) contractors will make one of the UK’s largest private sector employers; Mitie employs about 84,000 and OCS 135,000. The firms’ security and related FM service uniforms are common public sights (pictured, a Mitie cleaner at Euston station).
Rob Legge, Chief Executive Officer of the private equity-owned OCS Group described it as an important milestone for both and ‘an exciting opportunity to bring together two highly complementary businesses with a shared commitment to delivering the best outcomes for colleagues and customers’. The two firms together have revenues of about ยฃ8.5 billion. The OCS offer of 221.6 pence a share put a value on Mitie of about ยฃ3 billion and compares with the plc’s last week’s share price of about 150p. On the news of the deal, the share price rose sharply above 200p.
Legge said: “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.”
Comments
Chris Rogers, Chairman of Mitie, said: “Mitie has built one of the UK’s leading technology-driven Facilities Management, Facilities Transformation and Facilities Compliance services businesses. The Board believes OCS’s offer recognises the strength of the business, the progress achieved in recent years and the opportunities ahead. The combination would provide a stronger platform for growth through greater scale, complementary capabilities and enhanced investment capacity, while retaining the qualities that have made Mitie successful. Having carefully reviewed the offer, the Board has unanimously concluded that it represents an attractive outcome for shareholders, delivering the certainty of cash consideration while positioning the business for its next chapter of growth. Accordingly, the Board intends to recommend unanimously that shareholders vote in favour of the transaction.”
Phil Bentley, Chief Executive Officer of Mitie, described it as a testament to everything 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.”
While Mitie itself has been acquiring security and other businesses, OCS points to its record of integrating businesses such as EMCOR (UK) and FES. Mitie directors were advised by Ardea Partners and Peel Hunt. As a result of the deal, Mitie is suspending its ยฃ100m share buyback begun in October 2025. This follows OCS’ acquisition of the London-based guarding company City Group Security in May.
First quarter
Meanwhile Mitie released results for the first quarter of the 2026-27 financial year, to June 30. Phil Bentley described it as 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.’ Revenue for the quarter increased by ten per cent to ยฃ1,406m (compared with the first quarter of the year before’s ยฃ1,282m), ahead of UK FM market growth put at two or three per cent. Among the contracts singled out were security for Airbus; BBC Security and the Civilian Guard Force at the Sellafield nuclear plant in west Cumbria. Revenue in security was ยฃ309m for the quarter, a rise of 15 per cent compared with the year before.
Background
As featured in the August edition of Professional Security Magazine, a ‘Public Interest Test’ announced by the Cabinet Office, to be applied before renewing expiring central government departments’ contracts, as part of a move by Labour away from outsourced services to bringing people (as asked for by trade unions) in-house.
