Sunningdale Tech Ltd. said it has entered into a sales and purchase agreement to acquire UFE Inc.'s Singapore facility for $2 million.
Negotiations also are continuing for the sale of UFE North American assets as a going concern, with expectations that the company could announce a pending sale to a strategic buyer within days.
UFE, an injection molder based in Osceola, Wis., was ordered into receivership in August by a U.S. District Court judge in Detroit because of non-payment of bills by its owner, Catalina Precision Products Inc. of Canton, Mich.
Turnaround management company Conway Mackenzie Inc. of Birmingham, Mich., has been overseeing operations, while production has continued in Wisconsin and Monterrey, Mexico.
Another plant, in El Paso, Texas, was forced to close.
The new agreement with Singapore-based Sunningdale must still receive court approval, which could take several weeks.
Formerly known as Cosamold Pte Ltd., UFE's Singapore operation began its operations in 1972 and specializes in the design and manufacturing of complex high-cavitation molds, precision injection molding part production, and contract assembly for global blue-chip customers in the consumer, instrumentation, business-machine, automotive, and other industries.
UFEPL will be synergistic to Sunningdale's existing mold-making and molding businesses, Sunningdale said in a Nov. 26 filing with the Singapore Exchange.
Both Sunningdale and a company courting the purchase of the North American operations would represent strategic acquisitions by firms operating in the same industries, said Steve Wybo, managing director at Conway Mackenzie.
Plastics News Detroit-based staff reporter Rhoda Miel contributed to this report.