NorthEdge completes Fine Industries trade sale, scores 2.5x return

The GP secured a 2.5x return on the chemicals business after a three-year holding period – unquote" originally covered the exit announcement in February. The deal is NorthEdge's fourth exit; the buyout house scored its first divestment in June last year, when Accrol Group, a UK-based tissue manufacturer, listed on AIM with a £93m market cap.

NorthEdge invested £25.5m in Teesside-based Fine Industries in late 2013. The fresh funding was to be used to increase capacity and came from NorthEdge's debut fund, which closed on £225m earlier in 2013. Debt facilities were provided by HSBC and Yorkshire Bank.

Shenzhen-listed Lianhetech is a chemical contract manufacturer with a market cap of around $2bn and revenues in excess of $600m. Fine Industries will become the group's European base.

Fine Industries manufactures fine chemicals for the agriculture, pharmaceutical and speciality chemicals markets. Its clients include global blue chip companies. The company was established in 1977 and employs 220 people in its Seal Sands chemical plant in Middlesbrough.

Fine Industries reported a turnover of £52m in 2016 (against £40m at the time of NorthEdge's investment) with EBITDA of £10m.

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• Topics
• Exits
• UK / Ireland
• Industrials
• NorthEdge Capital
• Trade sale
• United Kingdom