Vopak makes agreed bid for Ellis & Everard
Vopak, the Dutch bulk storage and distribution group, has made an agreed bid for Ellis & Everard, the world’s fourth largest chemical distributor, for approximately £310m ($443m).
Vopak, created from the merger of Pakhoed and Van Ommeren, two leading Dutch operators in bulk storage and distribution, has offered 310p per share. The offer price exceeds analysts’ original forecasts of about 250p per share, valuing Ellis & Everard at up to £250m.
Shares in Ellis & Everard closed at 283½p on Thursday, up 22p, and almost double the close at 148½p the day before Ellis & Everard disclosed last month that it had received several takeover approaches.
The shares had fallen by 33 per cent in the preceding 12 months as investors shunned old-economy stocks.
The Ellis & Everard board has accepted the offer.
Ton Spoor, chief executive of Vopak said: “The acquisition of Ellis & Everard is an important step in the development of Vopak’s position as a leading logistics and distribution services provider to the oil and chemical industry. It enhances our position as one of the leading players in chemical distribution.”
A number of industry rivals are monitoring the situation and could launch a counter-bid.
Industry analysts had expected Ellis & Everard to be bought by Ashland, the largest chemicals distributor in North America, or Brenntag, a European chemicals distribution company. Although Vopak had been mooted as a possible buyer, it was thought to be still digesting the merger of Pakhoed and Van Ommeren, which was agreed in July 1999 after stalling a year earlier.
Ellis & Everard is understood to have received several initial expressions of interest, following a statement at its annual general meeting that it was “considering all options to enhance shareholder value”.
Ellis & Everard’s main attraction is its e-commerce strategy.
It is testing Goe&e.com, an internet-based system which allows UK customers to buy chemicals online. Ten customers are presently testing the system, with the target of 100 customers next year.
The group is also attempting to replicate the system in the US.
Ellis & Everard reported pre-tax profits of £34.1m for the year to April 30, on turnover of £853.1m,
Ellis & Everard was advised by Dresdner Kleinwort Benson.
