LDC invests in CEL Procurement


Clearwater Advisor

Clearwater International has advised private equity house LDC on its investment in CEL Procurement, a procurement services provider for public sector organisations.

LDC has taken a minority stake in the procurement services business for an undisclosed sum to support its plans for acquisition opportunities in the UK, US and Canada.

CEL employs 35 staff at its headquarters, managing more than £180m of products and services through its purchasing activities which include building materials, energy and agency labour.

The company holds exclusive rights to the Procurement for Housing brand, which allows CEL to procure EU compliant framework agreements.

CEL, which processes over 400,000 invoices each year for more than 800 social housing, independent healthcare and education-related organisations, de-merged from parent company CEL Group following a management buyout in 2008.

Clearwater International partner Paul Jones was supported by assistant director Chiara Pettinicchio in providing strategic advice to LDC for the transaction.

“We approached Clearwater to support us on our investment into CEL due to their specialist market knowledge of the outsourced procurement market. They gave us excellent insight into the market, a clear view on exit and how to create value through our anticipated buy & build strategy which we hope to work with them on during our investment period.”

Richard Ibbett, Investment Director at LDC

“Outsourced procurement continues to be a growth market and has become an established and value added service within the wider Support Services market. Whilst the market has a number of large and global players, it remains highly fragmented at the SME level and an ideal buy & build opportunity. CEL combines advisory, technology and outsourcing skills to generate tangible benefits for its customers and provides a strong platform to enter different territories and verticals.”

Paul Jones, Partner at Clearwater International