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SC&H Capital Seeks Investor or Buyer for Electronic Data Magnetics

May 26, 2021, 07:04 AM
Filed Under: Industry News
Related: SC&H Capital

By order of the U.S. Bankruptcy Court, Middle District of North Carolina, Greensboro Division, SC&H Capital, a leading investment bank specializing in M&A advisory, has been retained as the exclusive investment banker to Electronic Data Magnetics, Inc. (“EDM” or “the Company”) to seek an investor or a sale of the Company (or its assets) that would allow operations to continue.
EDM is a 38-year-old family-owned-and-operated manufacturer of technically advanced printed products. The Company is certified to manufacture and supply both magnetically striped and patented radio-frequency identification (“RFID”) products to all significant original equipment manufacturers (“OEMs”) of card vending equipment in the transit market, and other industries, and has provided these products to almost every major city in the U.S. either directly or through its OEM partners. Operating out of three buildings on a campus in High Point, North Carolina, EDM occupies a combined 105,000 square feet of space for engineering, state-of-the-art printing, encoding, converting, warehousing, distribution, and administrative offices.

Widespread shutdowns and stay-in-place orders induced by Covid-19 contributed to significant loss of ridership for EDM’s customers. The Company continues to operate with a reduced workforce and plans to reinstate the full staff as the pandemic subsides. It is anticipated that the demand for RFID cards will increase due to the perceived benefits of their “contactless” nature. This, along with EDM’s patented RFID card technology, which minimizes maintenance costs on card vending equipment, bodes well for how the Company is positioned in the marketplace as the economy reopens.

Hank Waida, Principal at SC&H Capital said, “An acquirer or investor can immediately leverage the Company’s transportation industry experience, patented RFID cards, extensive customer relationships, ongoing contracts, and highly skilled team to grow the business as metropolitan areas reopen and the mass transit industry rebounds.”

Opportunity exists for a specialty printer to gain entrance into the transit market and to utilize EDM’s capabilities and capacity to supply products to other industries including retail, hospitality, entertainment, advertising, and fundraising.

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