MBO for public sector services firm

PUBLIC sector management services company CEL, based in Glossop, has completed a management buyout for an undisclosed sum.

Chief executive Paul Kennedy and finance director Mohammed Ramzan led the buyout of the company, which employs 70 full-time staff.

CEL generates 70% of its income from long term public sector contracts, with government departments and 800 housing and healthcare organisations on its client list.

It procures £70m worth of goods for social housing organisations and provides purchasing, payment and knowledge services to the public sector.

Co-owners Ian McCrae and Kenneth Spencer have sold their shares to Mr Kennedy and Mr Ramzan and retired from the business, having established it over 20 years ago.

Mr Kennedy, appointed as chief executive in February 2008, was previously managing director of AIM-listed IT company Redstone Converged Solutions. Mr Ramzan joined in August 2008 and also previously worked for Redstone, where he was finance director.

Both are joined on the senior management team by two new appointments: Simon Read as sales and marketing director and Steve Malone as director of knowledge management services.

Two existing employees: Mark Butler, director of international payment services and Julie Craig, director of procurement services have also joined the top team.

Mr Kennedy said: “The future direction of the business is continued growth in our current markets, both organic and through the introduction of technology based services aimed at helping our customers improve their own trading positions.”

Mr Ramzan added: “We worked hard during the deal process to ensure that our plans would remain robust despite the current economic conditions. The nature of the services within our portfolio coupled with a high degree of recurring revenue, provides a solid foundation during a downturn.

“Indeed, if we continue to drive innovations into our service offering, we are well positioned to achieve a period of sustained growth”.

Manchester-based law firm Heatons acted as legal advisors for the deal, while accountants PKF have handled the tax aspects. Backing was provided by HSBC.