Coastcast Corporation has reached a non-binding agreement in principle to sell assets used in the operations of its plants in Rancho Dominguez, California, and Tijuana, Mexico, to a subsidiary of Fu Sheng Industrial Company Limited, a Taiwanese manufacturer of golf clubheads, compressors and electronic components with operations in Taiwan, China and the United States.
Hans Buehler, Chairman and CEO, stated: “The all-cash transaction is subject to certain conditions, including corporate approvals by both parties. Coastcast will retain its accounts receivable, cash and certain other assets. We believe that given Fu Sheng's complementary business operations, Fu Sheng is the logical choice of purchaser for our business operations, as our precision casting technology will generate synergies and diversification of Fu Sheng's existing operations.”
