NorthEdge Capital, the UK mid-market investor, has agreed to sell chemicals manufacturer Fine Industries to listed Chinese life sciences group Lianhetech.

Fine Industries is based in Middlesborough and will become Lianhetech’s European base. The company employs 220 staff and manufactures chemicals for agrochemical, pharma and specialty chemicals clients. It posted turnover of £52m (€61.5m) and Ebitda of £10m in the year to the end of September 2016.

NorthEdge invested in Fine Industries in November 2013. The business is led by chief executive Chris Gowland. For Lianhetech, which is led by chief executive Maggie Wang, the investment is its first outside China.

NorthEdge and Fine were advised by PwC and Addleshaw Goddard. Lianhetech was advised by EY and Travers Smith.

NorthEdge focuses on investing exclusively in the north of England and operates from offices in Birmingham, Leeds and Manchester. It has £525m of funds under management, and is currently investing its NorthEdge Capital Fund II, which closed on £300m in March 2016.