China Water: May 22, 2008: Heckeman buys China Water and Drinks, Inc.

For better or worse, bottled water is part of the water situation in Asia. Speaking from experience, if you don't trust the tap water, and it's hot out, it's nice to have water for sale. Therefore I share this news without comment at this time. === Heckmann to buy China Water for $625 million Heckmann to buy China Water for $625 million; company plans more acquisitions in water sector May 20, 2008: 08:25 AM EST http://money.cnn.com/news/newsfeeds/articles/apwire/648f31020fe9f31ae2501ae8a82da83c.htm NEW YORK (Associated Press) - Heckmann Corp., a blank-check company, said Tuesday it will buy China Water and Drinks Inc., which distributes and bottles water in China, for $625 million in a cash and stock deal. The company said about $455 million is expected to be paid in stock at an exchange rate of eight-tenths of a share of Heckmann stock for each share of China Water stock. An additional $170 million will be paid in cash at $5 per share. Heckmann said the acquisition will allow it to build a "global water company." The company said it will use the deal to begin an "aggressive acquisition program" in the water business. Heckmann said it will assemble a board of directors and a senior management team with experience in the water sector in Asia and other international markets. Xu Hongbin, founder and current chairman of China Water, will serve on the company's board of directors along with Andy Seidel, chairman and chief executive of Underground Solutions, a U.S. water infrastructure company. Heckmann said it will fund the deal with cash held in a trust and new shares to be issued. All remaining proceeds from the trust account will then be used for working capital and growth opportunities. Heckmann may also pay $150 million in contingent payments to noteholders and investors who have agreed to certain waivers, releases and terminations of rights if the combined company reaches $90 million in adjusted net income in 2009. After the deal closes, China Water will become a subsidiary of Heckmann. The deal is expected to close in the fall of 2008. Heckmann said Hongbin will serve as CEO of the subsidiary and Dick Heckmann will remain chairman and CEO of the combined company. China Water's shareholders already have approved the deal, Heckmann said. The company added that it has been cleared to apply to list its securities on the New York Stock Exchange and expects to begin trading on Friday. The stock currently trades on the American Stock Exchange. === Desert man investing in China water ACQUISITION: He will try to consolidate the bottled water market there like he did in the U.S. http://www.pe.com/business/local/stories/PE_Biz_D_heckmann21.33d8bc7.html Excerpt: "Palm Desert entrepreneur Richard Heckmann is diving back into the water business, with an aim to consolidate the bottled water industry in Asia, much like he did in the United States to the tune of billions in revenue. The former chief executive of Palm Desert-based US Filter said early Tuesday that his acquisition firm would acquire China Water and Drinks Inc. for about $625 million. Heckmann said China's rampant groundwater pollution, coupled with its population of 1.3 billion people, provide for an ample market. About 250 companies produce and sell bottled water in China, a hefty number that Heckmann said he hopes to consolidate."