US firm goes into bottled water market in China

California-based Heckmann Corporation (Heckmann) has acquired China Water and Drinks (China Water) for US$625 million. While Heckmann is a US blank check company, China Water is a PRC licensed bottled water producer and distributor, which distributes to 14 provinces and regions across the country. The acquisition aims to capitalise on the massive potential of what is currently a fragmented and under-served bottled water market in China.

After the acquisition, China Water will operate as a wholly owned subsidary of Heckmann under the leadership of Dick Heckmann, former CEO of US Filter. Heckmann will fund the acquisition of China Water with cash currently held in trust along with new shares to be issued.

While Thelen Reid advised China Water, DLA Piper represented Heckmann and worked together with Credit Suisse, which served as the financial adviser. Stephen Peepels, head of DLA Piper's US Capital Markets practice in Asia, led the deal with Steven Pidgeon, co-managing partner of the firm's Phoenix office.

“This is one of the most successful SPAC transactions in quite some time and the only significant transaction of its type in China. This is a very significant deal for both DLA Piper teams in the US and Hong Kong,” said Peepels.