Goldman Sachs Alternatives Buys Majority Stake in Celnor Group

Goldman Sachs Alternatives has signed a definitive agreement to take a majority stake in Celnor Group, a London-based testing, inspection, certification and compliance platform that has already passed £300 million in annual revenue — just three years after its founding in 2023.

The numbers behind the young company move fast. Celnor serves more than 20,000 clients, employs over 2,750 people and operates across 60 locations. It runs four divisions: Built Environment, Safety & Compliance, Risk Management, and Analytical Sciences. Its services cover regulatory, safety, environmental, testing, inspection, data and compliance requirements for customers managing the built environment.

The deal keeps the people who built the business in the cap table. Founder and CEO Simon Parrington and the broader management team stay invested alongside Goldman Sachs. Existing shareholder Inflexion Private Equity reinvests and retains a minority position. Parrington and his team continue to lead the company after closing.

The transaction awaits customary regulatory approvals and is expected to close in the first quarter of 2027.

What did the founders and backers say?

Parrington framed the deal as the logical next step for a company assembled at speed. "In three years, we have built a strong international platform, underpinned by exceptional people, trusted brands and a shared commitment to our customers," he said. "Partnering with Goldman Sachs is an important next step in our long term strategy and will enable us to invest further in our people and capabilities, strengthen our proposition for clients and create new opportunities for colleagues across the Group."

He also credited Inflexion, thanking the firm "for its invaluable support since day one" and saying he is "delighted they will continue as a partner in our next chapter."

Goldman's side sees a proven acquirer. "We've been very impressed by Simon and the management team's track record of building and scaling the Group via M&A, while maintaining a clear focus on its customers, its service quality and importantly, its people," said Jose Barreto, a partner within private equity at Goldman Sachs Alternatives. "We look forward to partnering alongside Inflexion and management to drive future growth, both in the UK and internationally."

Harry Wilson, an investor within private equity at Goldman Sachs Alternatives, pointed to the market structure: "Celnor has established a differentiated position in an attractive end-market underpinned by deep technical expertise, compliance requirements and trusted customer relationships. We look forward to drawing on Goldman Sachs' global network and value creation capabilities to support the Company's continued development, both organically and through targeted acquisitions."

Why did Inflexion stay in?

Inflexion's team called the exit-plus-reinvestment a template outcome. "Celnor is a great example of how Inflexion can provide huge flexibility and generate significant value. We backed an entrepreneurial founder to start from scratch to build a high-quality, scaled business in an attractive, fragmented market," said Tom Pemberton, partner and head of Enterprise Fund at Inflexion.

His colleague, investment director Dominic Clark, credited the method: "Celnor is an example of buy-and-build done well: a clear strategy, a disciplined and relationship-led approach to acquisitions, and sustained investment in the businesses once they joined." He flagged "significant runway ahead – particularly in the US and Continental Europe."

Where does Celnor grow next?

Celnor already spans the United Kingdom and is expanding internationally, including in the US and Continental Europe. Goldman Sachs' investment targets four levers:

• accelerating international expansion
• strengthening technology and operational capabilities
• investing in talent
• pursuing additional acquisitions

Management said Celnor will keep using a targeted buy-and-build strategy to widen its technical capabilities and geographic reach, and sees significant opportunity in fragmented testing, inspection, certification and compliance markets.

The advisory roster runs deep on both sides. Celnor and Inflexion used Rothschild & Co for corporate finance, OC&C for commercial matters, Alvarez & Marsal for financial and tax, and Addleshaw Goddard plus Slaughter and May on legal. Goldman Sachs Alternatives relied on Houlihan Lokey for M&A, Linklaters on legal, and EY on financial and tax.

Goldman Sachs Alternatives manages more than $706 billion in alternative assets across private equity, growth equity, venture capital, private credit, real estate, infrastructure, sustainability and hedge fund strategies. Its private equity arm has deployed more than $75 billion since 1986.

In short: Goldman is paying up for a three-year-old, £300 million-revenue consolidator — and betting the buy-and-build runway in fragmented compliance markets is far from finished.