Lianhetech Enters Europe with Fine Industries Buy

Chinese life sciences company Lianhe Chemical Technology (Lianhetech) has gained its first base in Europe after agreeing to buy UK-based chemical manufacturer Fine Industries in a deal reported to be worth £103 million.

Owned by private equity firm NorthEdge Capital, the Middlesbrough-based company develops and manufactures complex intermediates and actives for the agrochemical and pharmaceutical industries as well as a variety of solutions for the specialty chemicals market. Its Seal Sands site is approved by the US Food & Drug Administration. The group, which also includes subsidiaries Fine Organics and Fine Environmental Services, employs 220 people and has sales of more than $60 million.

Commenting on the acquisition, Fine Industries’ CEO, Chris Gowland, said the group “felt privileged” that Lianhetech has selected the company to be the platform for its European expansion strategy. “I expect the union of the companies to further strengthen our position in the global market,” he said.

Lianhetech’s CEO Maggie Wang added that the acquisition provides the geographic presence, capability and expertise needed to enhance its services and solutions and leverage its technologies for customers worldwide. “We expect Fine Industries' customer base, expertise and capabilities to strengthen our organizational offerings,” she commented.

Headquartered in Taizhou, Zhejiang, Lianhetech operates seven chemical production plants in China as well as two R&D centers in Shanghai and Jiangkou. The company is reported to have a market value of $2 billion.

According to newly released research from M&A and debt advisory firm Livingstone Partners, Chinese acquisitions of UK companies increased by 215% in the period 2014-2016. The study found that the number of UK acquisitions by Chinese buyers tripled from six in 2014 to 22 in 2016. Livingstone’s London-based partner, Jeremy Furniss, said the rapid increase in acquisitions by Chinese investors is set to continue.