He wants to consolidate the bottled water business in Asia by acquiring China Water and Drinks Inc. (China Water) for $625 million, according to a May 20 article in The Press-Enterprise of Riverside, CA.
According to the article, “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.”
The article also said shareholders of China Water, based in Hong Kong and registered in Nevada, have approved the deal, which is to be completed by the end of the year. Heckmann’s Palm Desert-based acquisition firm, Heckmann Corp., will pay for China Water with $455 million in stock and $170 million in cash, according to the story. Heckmann Corp. had raised $450 million in an initial public offering in November, but it had not indicated at that time what it would be buying.
Heckmann Corp. is now listed on the American Stock Exchange, and will also be listed on the New York Stock Exchange as of May 23, the article said.
China Water, with plants in six Chinese cities and distribution in 14 Chinese provinces, is expected to produce 1.1 billion small bottles of water and 21 million 5-gallon bottles this year, according to The Press-Enterprise. Heckmann was quoted as saying that China Water ranks fifth in revenue behind other bottled water companies in Asia.
Throughout the 1990s, Heckmann acquired more than 150 water treatment companies to create USFilter, which was sold in 1999 to Vivendi S.A. for $8.2 billion.
The article said former USFilter wastewater division chief operating officer Andy Seidel will join China Water’s board of directors. China Water’s founder and current chairman, Xu Hongbin, will also be on the board.
Heckmann’s other interests include part ownership of the Phoenix Suns basketball team and a recent stint as CEO of a sporting goods manufacturer, K2 Inc. The article said Heckmann Corp.’s leadership includes former Vice President Dan Quayle, TV sports commentator and former college football coach Lou Holtz, and Alfred Osborne, associate dean of the UCLA business school.
