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*China Water and Drinks Inc and Heckmann Corporation of Palm Desert, California have announced that China Water has completed the acquisition of two bottled water manufacturers in China for $11.7m. *
Beijing Changsheng Taoda Co Ltd has been acquired for $6m. Beijing Changsheng Taoda 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 water cooler bottled water production line with an annual capacity of 8.2 million 18.9-litre bottles to complement its small bottle water production.
Changsha Rongtai Co Ltd has been acquired for $5.7m. Changsha Rongtai 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," said 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, favourable demographic characteristics, and the need for clean, safe drinking water."
"We're 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," said 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 capitalise 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 30 October, with the closing of the merger expected to occur on 31 October.
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.