CEL, a Glossop-based procurement and payment company serving the public sector, has been bought by its management for an undisclosed sum.

CEL, a Glossop-based procurement and payment company serving the public sector, has been bought by its management for an undisclosed sum.

The MBO was led by new CEO Paul Kennedy and finance director Mohammed Ramzan, and was backed by HSBC. The deal will enable co-founders Ian McCrae and Kenneth Spencer, who began the venture in 1987, to exit the business and retire.



CEL generates 70 per cent of its income from public sector contracts, employs more than 60 staff and operates five brands. The company reported a 50 per cent increase in sales for its Procurement for Housing brand in the past three months compared with the same period last year. In the first quarter of 2009, CEL will launch a new division: Technology Services. 



Paul Kennedy, CEL chief executive, 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. 
 


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