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Caledonia Inv PLC (CLDN)

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Wednesday 24 May, 2006

Caledonia Inv PLC

Celerant MBO

Caledonia Investments PLC
24 May 2006

Caledonia Investments plc

Caledonia announces that it has backed the management buy-out of Celerant
Consulting from Novell Inc. A copy of the Celerant announcement appears below.

Celerant Consulting announces management buy-out

Richmond, UK - The management of Celerant Consulting, the global operations
management consultancy, today 24 May 2006, announced that they have agreed with
Novell, Inc., to acquire Novell's majority shareholding for a total of
approximately $77m.  As a result of the buy-out Celerant's management will hold
51 per cent of the business with Caledonia Investments plc, the UK quoted
investment trust, holding the remaining 49 per cent.

The management buy-out was triggered by Novell's recent decision to focus on its
core businesses. The sale brings to an end Novell's five year interest in
Celerant, which saw a period of significant profit and revenue growth for the
consulting business.

Caledonia has invested $30m in equity and loan notes in the transaction and
Jamie Cayzer-Colvin and Roland Fisher from Caledonia will be joining the
Celerant board.

Ian Clarkson, Celerant Consulting CEO, said:

'The buy-out is an important milestone in the development and expansion of our
business. It provides us with both the certainty and the opportunity to continue
to invest in the platforms for growth in what is the fastest growing segment of
the global consulting market.

With Novell's support over the last five years we grew to become the tenth
largest global operational management consultancy with a significant presence in
both Europe and North America. Caledonia, a long-term investor, is the ideal
partner to help us continue this performance and consolidate our position.'

Jamie Cayzer-Colvin, Director of Caledonia, added:

'Celerant is in the fast growing operations management consulting market sector
with an established international footprint. It has multinational capabilities,
a blue-chip client list and strong client relationships. We are pleased to be
backing a strong management team that has steered Celerant through a strong
period of growth.'

For Novell, Jack Messman, Chairman and CEO, said:

'Celerant is well positioned for the future, with its strong history in
management consulting and world-class consultants.  Under its new ownership,
Celerant can focus all its resources, including its top leadership, on its core
management consulting business.  We wish Celerant and all of its employees great


Celerant Consulting                                                           Tel: +44 (0)20 8338 5000

PR Advisors to Celerant Consulting in Europe
UK: Grayling UK Ltd. (Nigel Kennedy)                                          Tel: +44 (0)20 7255 1100
France : Lewis Communications Sarl (Patricia Ott)                             Tel: +33 (1) 55 31 98 00
Benelux: Lewis Global Public Relations (Marieke Van Zuien)                     Tel: +31 (40) 235 46 00
Germany: Pleon Communications (Anette Weidner)                                 Tel: +49 (69) 24286 170
Nordic: JKL (Mr. Tue Aip)                                                         Tel: +45 33 38 56 80
Celerant Consulting US: Charles Spofford                                          Tel: +1-781-274-7390

Caledonia                                                                     Tel: +44 (0)20 7802 8080
Jamie Cayzer-Colvin
Roland Fisher

College Hill (PR Advisors to Caledonia)                                       Tel: +44 (0)20 7457 2020
Tony Friend
Richard Pearson

Notes for Editors:

About Celerant

Celerant is a leading management consultancy that delivers change by enabling
clients to achieve profound business and operational performance improvement.

Celerant helps clients understand the reality of their business performance then
works collaboratively to close the gap between that reality and the business
aspiration. By driving improvements in processes and systems combined with
profound behavioural change, Celerant helps clients achieve breakthrough
performance with a high degree of certainty and sustainability.

This unique approach to delivering business performance improvement is called

Since 1987, Celerant has completed projects in 44 countries across a range of
sectors: chemicals, communications, energy, fast moving consumer goods,
insurance, life sciences, manufacturing and utilities. The business has a number
of capabilities, including asset management, process excellence, organisational
alignment and effectiveness, revenue growth, integrated supply chain and
technology enablement.

More information about Celerant can be found at

About Caledonia

Caledonia is a long established investment company with international scope
listed on the London Stock Exchange.  Since April 2003 Caledonia has been
classified in the Global Growth sector of investment trusts where its investment
performance puts it in the top quartile over 1, 3, 5 and 10 years.  Moreover,
Caledonia's strategy has delivered outperformance against its benchmark FTSE
All-Share Total Return index of 137% over the five year period to 30 April 2006
and 160.4% over the ten year period to 30 April 2006.  Caledonia has a policy of
delivering progressive annual dividends with a 38-year record of unbroken annual
dividend increases.  Through holding a diversified portfolio, Caledonia aims to
maintain a medium overall risk position.

At 30 April 2006, Caledonia had an unaudited Net Asset Value of 2069p per
ordinary share.

Caledonia's strategy is to focus on a portfolio of around 30 to 40 principal
investments, where it has significant and influential stakes with a policy that
at least 50% of the total portfolio should be in quoted securities or other
liquid assets.  New investments will typically be in the range £10 million to
£25 million.  Careful control is exercised over costs, notwithstanding
Caledonia's active and participative management style.  The Board believes that
Caledonia has a long established and valuable reputation for being a supportive
long term investor, which brings a strong deal flow of opportunities not always
available to others.

Caledonia's investments are focused on a selected range of sectors where it has
good in-house knowledge that can add value to management of investee companies.
Where particular expertise is not held in-house, investments may be made through
third party managed funds where Caledonia will often seek a significant stake in
the management company.

Caledonia's selected sectors are: Financial: comprising 25% of net assets,
including holdings in Close Brothers, Rathbone Brothers and Polar Capital;
Leisure and Media: comprising 16% of the net assets, including holdings in
Kerzner International and The Sloane Club; Managed General Funds: comprising 24%
of the net assets including holdings in British Empire Securities and Cobepa;
Industrial and Services: comprising 10% of the net assets, including investments
in Offshore Logistics and Melrose Resources; Property: comprising 12% of the net
assets, including a holding in Quintain Estates; net current assets 11%; and
Other: comprising 2% of the net assets.   The percentages of the net assets
quoted are as at 30 April 2006.

Further information on Caledonia can be found at

                      This information is provided by RNS
            The company news service from the London Stock Exchange