CEL, a Derbyshire-based provider of outsourced services to social housing organisations, has completed a management buy-out (MBO).

CEL, a Derbyshire-based provider of outsourced services to social housing organisations, has completed a management buy-out (MBO).

The deal sees Ian McCrae and Kenneth Spencer, who founded the business in 1987, exit the company to retire. Financial details of the transaction, which was backed by HSBC, were not disclosed.

The business has been bought by CEO Paul Kennedy and finance director Mohammed Ramzan, who were appointed in February and August last year. The duo previously worked together at AIM-listed IT services company Redstone Converged Solutions, where Kennedy was MD and Ramzan finance director.

They are joined in the senior management team by two new appointments, sales and marketing director Simon Read and director of knowledge management services Steve Malone, as well as existing CEL employees Mark Butler, director of international payment, and Julie Craig, director of procurement.

Manchester-based law firm Heatons acted as legal adviser for the deal, while accountant PKF handled its tax aspects.

CEL provides procurement, international payment and consultancy services to government departments and 800 housing and healthcare organisations. It generates 70 per cent of its income from long-term public sector contracts and employs 60 staff.