LDC invests in CEL Procurement

The fresh capital will be used to help fuel the firm's acquisition strategy. CEL is looking to expand its presence in the UK and in select international markets, including the US and Canada. Aside from exploring opportunities in domestic and international markets, the compant intends to increase trade for suppliers.

The investment sees LDC take a minority stake in CEL. The value of the deal has not been disclosed, but LDC usually invests between £2-100m seeking development capital transactions, with an average deal value of £31m, according to unquote" data. LDC invested more than £409m in 22 companies in the UK last year, including £25m for a minority stake in clothing company Joules in November 2013.

Company
Headquartered in Warrington and with 35 staff members, CEL manages products and services worth £180m through its purchasing activities, including building materials, energy and agency labour. It processes approximately 400,000 invoices each year for more than 800 social housing, independent healthcare and education-related organisations.

CEL Procurement underwent a management buyout in 2008, which saw it spin off from parent company CEL Group. The business delivers procurement services for public sector organisations in the UK. The firm also holds exclusive rights to the Procurement for Housing brand, which allows it to procure EU compliant framework agreements.

People
LDC investment director Richard Ibbett, who takes a seat on the CEL board of directors, was supported by director and co-head of LDC North West Jonathan Bell. Paul Kennedy is CEO of CEL.

Advisers
Equity – DWF, Jonathan Robinson (Legal); Clearwater Corporate Finance (Corporate finance). Company – Heatons (Legal); Beech Advisory (Financial due diligence).
Vendor – Deloitte (Financial due diligence); PMSI (Management due diligence).

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• Topics
• Expansion
• UK / Ireland
• Financials
• United Kingdom
• LDC