The chief executive of a chemical distribution firm, taken over in a deal valuing it at £310 million, has said the firm needed to be part of a bigger group in order to survive.

Ellis & Everard (E&E) accepted a 310p-a-share bid by Dutch logistics and distribution group Vopak, whose estimated value is more than twice that of the Bradford-based company.

E&E chief executive Peter Wood said consolidation was necessary as companies operated on an increasingly global scale.

He said: "During this year we have been looking at a number of ways to move our company forward and during our AGM statement in October indicated we were looking for buyers.

"There were a number of interested parties and I believe this offer is the best for the shareholders and the employees.

"We were already arguably the largest chemical distribution business in the world but we recognise the trends in industry are towards globalisation and we need to be part of a global player.

"Being a relatively small company in a sector that wasn't particularly rated meant we needed to secure our future."

The deal will see the contracts for some of the top ranks in E&E's board terminated early with compensation packages for chairman Keith Hopkins, non-executive director Deryk King, Mr Wood and group finance director John Samuel.

Ton Spoor, Vopak's chief executive, said: "This enhances our position as one of the leading players in chemical distribution.''