LDC invests in Warrington procurement firm CEL
PRIVATE equity investor LDC has taken a minority stake in procurement services business CEL Procurement.
The business, owned by Paul Kennedy and Mohammed Ramzan, plans to use the cash to fund overseas growth through acquisitions in the US and Canada.
The value of the investment was not disclosed.
The business delivers procurement services for public sector organisations, primarily in social housing.
CEL, which de-merged from parent company CEL Group following a management buyout in 2008, employs 35 staff and manages £180m of products and services through its purchasing activities.
Chief executive Paul Kennedy said: “LDC has a rich pedigree in supporting management teams in fulfilling their growth ambitions. We look forward to working with Richard and Jonathan to identify acquisition opportunities that will introduce us to new domestic and international markets, but also enhance our ability to deliver value for money for customers and increase trade for suppliers.”
LDC investment director Richard Ibbett will sit on the board at CEL. He said: “CEL’s management team has worked hard to deliver impressive growth in recent years and establish its enviable market position in the social housing sector. Our investment recognises the significant prospects of CEL, in the UK and abroad, and will help to accelerate the next stage of the business’ development and expansion.
LDC was advised by Jonathan Robinson at DWF and Clearwater Corporate Finance. Heatons and Beech Advisory advised CEL. Deloitte and PMSI carried out vendor due diligence.
