China Solar & Clean Energy grabs solar water heater co.

Beijing's China Solar & Clean Energy Solutions (OTC: CSOL) said today it signed a definitive agreement to acquire solar water heater maker Shenzhen PengSangPu Solar Industrial Products for $2.8 million in cash and stock.

China Solar, which manufactures and distributes solar hot water and space heating devices in China, said the deal will significantly expand its customer base.

"The acquisition of Shenzhen PengSangPu extends our strategic footprint and opens new markets in Southern China where local government strongly support using solar water heaters in residential buildings," said Deli Du, CEO of China Solar.

"This transaction brings us additional proprietary products and complements our Clean Technology Energy product portfolio."

Clean Solar said Shenzhen PengSangPu, founded in 1993, specializes in manufacturing and selling flat plate solar water heaters, and installation and engineering of central solar hot water systems for business users including schools, hotels, hospitals, and factories.

PengSangPu's annual production capacity of flat plate solar power collectors is 400,000 square meters, which are sold in China, the EU, and North America, according to China Solar.

"By integrating their proprietary technologies and engineering expertise, we expect to both improve our competitive advantage and overall profit margins," said Du.

"The acquisition is expected to be accretive to China Solar's 2008 earnings."

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