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Heckmann Corporation of Palm Desert, California (AMEX: HEK, HEK.U, HEK.WS) (“Heckmann”) and China Water and Drinks Inc. (OTCBB: CWDKE) (“China Water”) announced today that they have signed a definitive agreement under which Heckmann would acquire China Water, a leading producer and distributor of bottled water in China, for an aggregate purchase price of approximately $625.0 million.
Of the total price, approximately $455.0 million is expected to be paid in common stock at an exchange ratio of 0.80 per share of Heckmann stock for each share of China Water stock (closing stock price of $7.48 on May 16, 2008), and approximately $170.0 million is expected to be paid in cash at $5.00 per share. Following completion of the transaction, China Water will become a wholly-owned subsidiary of Heckmann. Holders of a majority of China Water’s stock have already approved the transaction. Heckmann has been cleared to apply to list its securities on the New York Stock Exchange (NYSE) and expects its common stock, units, and warrants to begin trading on the NYSE on May 23, 2008.
“We are very pleased to announce this transaction, as China Water will be our platform to build a global water company,” stated Dick Heckmann, Chairman and CEO of Heckmann Corporation. “We are excited about the opportunity to build another company in the water sector and believe that the attractive growth profile and favorable market dynamics make this an ideal acquisition for our SPAC. China Water’s well-established bottled water platform, combined with the economic growth, favorable demographic characteristics, and need for clean, safe drinking water in China, make this combination a compelling growth story. We plan to leverage this foundation to execute an aggressive acquisition program in the highly-fragmented water business and look forward to leading this company through its next stage of growth.”
“In order to help execute our growth strategy, we are in the process of assembling a Board of Directors and a senior management team that has extensive experience in the water sector both in Asia as well as in other international markets. I am pleased to announce that Mr. Xu Hongbin, the Founder and Chairman of China Water, will join our board of directors along with Andy Seidel, Chairman and CEO of Underground Solutions, one of the fastest growing water infrastructure companies in the US. Mr. Seidel succeeded me as CEO of US Filter, after having served as the Chief Operating Officer of the US Filter wastewater group. We look forward to leveraging our combined operating and transaction experience to grow this business into a worldwide water enterprise.”
“We are very excited to join with Heckmann Corporation and its experienced management team,” stated Xu Hongbin, the Founder and Chairman of China Water. “We believe that our combination with Heckmann will provide enhanced capital and management resources that will deliver superior value to our shareholders.”
Resource: Business wire
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