Caledonia sells Celerant stake

CALEDONIA Investments has completed the sale of its stake in global management consultancy firm Celerant for a total of £47.7 million.

The self-managed investment trust backed a management buyout of the Surrey-based consultancy in 2006, putting up £20.3m in equity and loan notes to secure a 47.3% stake from former owners Novell Inc.

Caledonia yesterday said it had agreed to sell its holding in Celerant to Hitachi Consulting Corporation for immediate euro and sterling cash payments equivalent to £43.4m, with a further £4.3m placed in escrow to be released over time.

Since taking up the stake, Caledonia has received £9.6m in loan note repayments and interest.

The sale to Hitachi will see Caledonia achieve a net rate of return on investment of 27.9% — more than three times the sum initially invested.

The trust said the proceeds from the Celerant transaction would be made available for future investment activity.

Caledonia was acquired by the Cayzer family in 1951 and listed on the stock exchange nine years later.

Some of the family remain shareholders in Caledonia through the Cayzer Family Trust Company, although the late Sir James Cayzer and his nephew Nigel — who both made their homes in Angus — divested their interests some years ago.