NorthEdge completes £25m secondary buyout
PRIVATE equity firm NorthEdge Capital has backed a £25.5m secondary buyout at Teeside chemicals business Fine Industries.
NorthEdge, based in Leeds and Manchester, is supporting a deal led by managing director Craig Morgan who was involved in a 2008 buyout from German group Evonik Degussa.
As part of the deal RooGreen director Brian Davidson will be joining the board as non-executive chairman.
The deal was led by NorthEdge partner Ray Stenton, director James Hall and investment manager Tom Rowley.
Fine Industries manufactures fine chemicals for use in the crop protection, pharmaceutical and specialty chemicals markets. Founded in 1977, the business employs 270 staff had sales of £40m in the year to the end of September. It exports to countries including Switzerland, Germany, US, Brazil and Ireland.
NorthEdge said its investment will accelerate the capital expenditure programme to increase capacity and support the company’s growth ambitions.
Mr Stenton said: “Fine Industries is a high quality business that operates in a large and growing global market, with long term fundamental drivers supporting continued growth. As a market leader the business enjoys strong relationships with its blue chip client base. We are looking forward to working with the management team to support their growth plan.”
The deal is the fourth transaction by NorthEdge from its maiden fund, which closed at £225m in March this year. It follows investments into specialist engineer FPE Global; IT firm Jigsaw24; and Help-Link, the boiler and central heating installation specialist.
KPMG advised NorthEdge and PwC advised the company. Legal advice was provided by Addleshaw Goddard and Bond Dickinson. Debt facilities were provided by HSBC and Yorkshire Bank.
