Marlowe in Talks with Mitie for Potential Merger
Deal News | Jun 05, 2025 | EIN
In a significant development within the UK’s compliance and risk management sector, Marlowe plc, co-founded by notable businessman Lord Ashcroft, is in preliminary discussions regarding a potential merger with Mitie Group, a leading FTSE 250 outsourcing company. Marlowe’s shares jumped 10.3% following rumors of a takeover, trading at 406p. The company has made clear there is no guaranteed offer yet and recommends shareholders remain patient. Established in 2016 by Ashcroft and former CEO Alex Dacre, Marlowe was created as a cash shell and has since expanded through strategic acquisitions. The company recently streamlined its operations by selling a significant portion to Inflexion Private Equity, a deal that also saw Dacre transition to the private equity firm. Mitie, with a rich history dating back to 1987, offers a wide array of services across sectors including government, defense, and manufacturing, employing around 72,000 individuals. The discussions are in early stages with Mitie facing a deadline of July 2 to make a firm offer.
Sectors
- Compliance and Risk Management
- Outsourcing Services
Geography
- United Kingdom – Both Marlowe and Mitie are based in the UK and the merger talks concern their operations within this region.
Industry
- Compliance and Risk Management – Marlowe operates in the compliance and risk management sector, providing services like safety inspections and health support for businesses.
- Outsourcing Services – Mitie is a company providing outsourcing services, including engineering, security, and cleaning, serving multiple sectors.
Financials
- 430 million – The sale amount of Marlowe's assets to Inflexion Private Equity.
- 200 million – The value of special dividends and share buybacks paid to Marlowe's shareholders from the sale process.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Marlowe | Target company | Company | A compliance and risk management company co-founded by Lord Ashcroft. |
| Mitie Group | Bidding Company | Company | A UK-based FTSE 250 outsourcing company involved in a variety of services across different sectors. |
| Lord Ashcroft | Largest Shareholder and Co-founder | Person | A British businessman and former deputy chairman of the Conservative Party who co-founded Marlowe. |
| Alex Dacre | Co-founder and Former CEO | Person | Former CEO of Marlowe who joined Inflexion Private Equity as part of a deal. |
| Inflexion Private Equity | Selling Company for Assets | Company | Private equity firm that bought part of Marlowe's operations. |