SEW reported in March (SEW_0410) that Coastcast was showing all of the signs of a slow return to profitability after several quarters in the red, and shortly thereafter the company managed to show a small profit in the first quarter of the year. Barely a month after Coastcast reported net income of $671,000 on a 53.3% sales increase, Hans Buehler, chairman and CEO, announced that the company would be selling off its assets.
“It is with a heavy heart that I am writing this announcement. After almost 25 years in business, the board of directors has determined that it is in the best interests of the company to wind up the company's business operations.” Buehler wrote in a press release.
Coastcast has now reached an agreement to sell its assets used in the operations of its plants in Rancho Dominguez, CA, and Tijuana, Mexico, to Fu Sheng Industrial Co. Ltd. out of Taiwan. Fu Sheng is a manufacturer of golf club heads, compressors and electronic components with operations in Taiwan, China and the U.S. 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.
