Ellis & Everard bought by Dutch company

Chemicals group Ellis & Everard has been bought by Dutch logistics and distribution group Vopak in a deal valuing the company at £310 million.

Chemicals group Ellis & Everard has been bought by Dutch logistics and distribution group Vopak in a deal valuing the company at £310 million.

The recommended cash deal by Vopak values each Ellis & Everard share at 310p, a higher-than-expected 130 per cent premium on Ellis & Everard's mid-market price of 135p, set on October 20.

Is is thought that Vopak will combine Ellis & Everard with its chemical distribution division with the aim of doubling its sales within three to five years.

Vopak said it had not yet quantified the amount of cost savings it expected to make as a result of the deal.

Ton Spoor, Vopak chief executive said the acquisition of Ellis & Everard was an important step in the development of Vopak's position as a leading logistics and distribution services provider to the oil and chemical industry.

He stressed Vopak was buying the company to grow it but did not rule out the need for redundancies further down the line.

Ellis & Everard is based in Bradford, West Yorkshire, employing 2,500 people split between the US and Europe.

Of these, 1,000 are employed in the UK in 20 facilities around the country.

It specialises in the sale, marketing and distribution of chemicals and polymers.

Peter Wood, Ellis & Everard, chief executive, added his company considered the offer was in the best interests of shareholders and employees.

Ellis & Everard will delist from the London Stock Exchange by January at the latest.

In early trading today, Ellis & Everard saw its shares lift nearly 7 per cent on the news, rising 19p to 302p.