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China Water and Drinks Announces the
Acquisition of Two Bottled Water Manufacturers in China
Oct 24, 2008
China Water and Drinks Inc. (OTCBB: CWDK.OB)
("China Water") and Heckmann Corporation of Palm Desert, California
previously disclosed that these acquisitions were in process. Both
acquisitions have now successfully closed, as follows:
-- Beijing Changsheng Taoda Co., Ltd. was acquired for $6.0 million
in cash. Beijing Changsheng Taoda Co. currently operates one newly
built facility outside Beijing, with an annual capacity of
approximately 247.1 million small bottles. The company plans to add
a new carboy bottled water production line with an annual capacity
of 8.2 million carboy bottles to complement its small bottle water
production.
-- Changsha Rongtai Co., Ltd. was acquired for $5.7 million in cash.
Changsha Rongtai Co. currently operates one facility in Changsha,
Hunan province, which has an annual small bottle capacity of
approximately 178.5 million bottles.
Together these acquisitions add two small bottled water production
lines with an annual capacity of approximately 426 million bottles,
and are China Water's first expansion into the Beijing area.
"These acquisitions demonstrate our continuing ability to execute
our growth strategy of consolidating the highly-fragmented bottled
water market in China," stated Hong Bin Xu, the Founder, Chairman
and CEO of China Water. "The demand for bottled water in China
remains strong, fueled by the country's continued economic growth,
favorable demographic characteristics, and the need for clean, safe
drinking water."
"We are very pleased to have completed these acquisitions early in
the fourth quarter and are now even more confident in China Water's
ability to continue to build its business and secure its place as a
leading producer of bottled water in China," stated Richard J.
Heckmann, Chairman and CEO of Heckmann Corporation. "We look forward
to consummating our transaction at the end of this month and teaming
with Mr. Xu to capitalize on our considerable financial flexibility
in order to build this business into a worldwide water enterprise."
In May, China Water entered into a definitive merger agreement with
Heckmann Corporation. The merger has been approved by a majority of
China Water shareholders and Heckmann shareholders are scheduled to
vote on the transaction on October 30th, with the closing of the
merger expected to occur on October 31st. On October 2, 2008, the
U.S. Securities & Exchange Commission declared effective the
definitive information and proxy statements for the merger and these
are available free of charge on the SEC's web site at www.sec.gov.
About China Water and Drinks
China Water and Drinks Inc. is a leading producer and distributor of
bottled water in China. Through its production facilities in
Guangzhou, Zhanjiang, Feixian, Changchun, Nanning and Shenyang, the
Company produces and distributes bottled water to 14 provinces and
regions in China. The Company markets its own product primarily
under the brands "Darcunk" and "Grand Canyon", supplies purified
water to both local and international beverage brands such as
Coca-Cola and Uni-President and provides private label bottled water
for companies such as Sands Casino, Macau.
SAFE HARBOR STATEMENT
Statements in this press release that relate to future plans,
objectives, expectations, performance, revenues and earnings
projections, future profitability estimates, industry and market
conditions, positioning and market plans, growth estimates, risk
assessments, anticipated events, and the like are "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995 and the Securities Exchange Act of 1934. Future
events, risks and uncertainties, individually or in the aggregate,
could cause actual results to differ materially from those expressed
or implied in these statements. Factors that may cause such
differences include changes in market conditions, changes in
economic environment, competitive factors and the other factors
discussed in the "forward-looking information" or "risk factors"
sections included in China Water's and Heckmann Corporation's
filings with the Securities and Exchange Commission, including their
definitive information and proxy statement and prospectus effective
October 2, 2008, their Annual Reports on Form 10-K, and amendments
thereto, Quarterly Reports on Form 10-Q, and amendments thereto, and
other documents that China Water and Heckmann have filed with the
Commission, all of which are available free of charge at the website
of the U.S. Securities & Exchange Commission at www.sec.gov.
Interested stockholders and investors can access additional
information about Heckmann and China Water filed with the Securities
and Exchange Commission, on the SEC's web site at
www.sec.gov.
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