Mitie to acquire Marlowe for $496Mn in major UK outsourcing deal
LONDON, UNITED KINGDOM — Mitie Group plc, a facilities management company in the United Kingdom, has agreed to acquire its smaller rival Marlowe plc for approximately £366 million (US$496 million).
The deal, announced June 5 to the London Stock Exchange, comes through a Rule 2.7 firm offer, signaling a binding intention to proceed. The merger aims to strengthen Mitie’s presence in compliance and risk management services.
Marlowe shareholders will receive 1.1 new Mitie shares plus 290 pence in cash per Marlowe share, valuing each share at 466 pence—representing a 26.5% premium over Marlowe’s June 3 closing price.
While Marlowe shares jumped 8% following the news, Mitie’s stock fell 10%, reflecting investor caution over integration risks and deal costs.
Expanding capabilities and workforce
Mitie, which employs around 72,000 people across the UK and Ireland, offers integrated services across cleaning, maintenance, security, and hygiene for both public and private sector clients.
With FY2024 revenues topping £4.5 billion (US$6.1 billion), Mitie is targeting long-term growth through digital transformation and strategic acquisitions.
Marlowe, listed on London’s AIM junior market, brings 3,000 employees and expertise in fire safety, water and air hygiene, and regulatory compliance. Its operations serve UK businesses across critical safety and inspection sectors.
The company was co-founded by former Conservative Party deputy chairman Lord Ashcroft, who currently holds an 18.9% stake and has served as interim chair since June 2024.
Mitie CEO Phil Bentley said the acquisition “adds 3,000 highly respected colleagues to Mitie’s capabilities” and is expected to create £30 million (US$40.6 million) in annual cost savings while unlocking cross-selling opportunities.
Strategic fit and future plans
The deal will include Marlowe Fire & Security Group and Environmental Services. Mitie called these units “an excellent strategic fit” for its existing compliance division, positioning the company as a leader in safety and facilities compliance.
Ashcroft hailed the acquisition as “excellent value” for shareholders and “the final piece” in his mission to maximize returns.
Pending regulatory approvals and final legal work, the transaction is expected to close in Q3 2025. Customers and partners are currently reassured by both companies that business will continue as usual throughout the transition.
