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Heckmann to Acquire China Water and Drinks for $625 Million

Posted on: Wednesday, 21 May 2008, 09:00 CDT

Heckmann and China Water and Drinks have signed a definitive agreement under which Heckmann would acquire China Water, a producer and distributor of bottled water, for an aggregate purchase price of approximately $625 million.

Following completion of the transaction, China Water will become a wholly-owned subsidiary of Heckmann. Pursuant to the terms of the agreement, shareholders of China Water will receive $0.80 per share of Heckmann common stock for each common share of China Water, or if stockholders so elect, $5 per share in cash.

Dick Heckmann, chairman and CEO of Heckmann, said: "We are very pleased to announce this transaction, as China Water will be our platform to build a global water company."

Xu Hongbin, founder and chairman of China Water, said: "We believe that our combination with Heckmann will provide enhanced capital and management resources that will deliver superior value to our shareholders."

The transaction is expected to close in the fall of 2008. Post-closing, Mr Heckmann will remain chairman and CEO of Heckmann and Mr Hongbin will serve as the CEO of China Water and Drinks.

Source: Datamonitor

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