By order of the U.S. Bankruptcy Court of the Middle District of North Carolina Greensboro Division, SC&H Capital, an investment bank specializing in M&A advisory, was retained as the exclusive investment banker to Electronic Data Magnetics to seek an investor or a sale of the company (or its assets) that would allow operations to continue.
Electronic Data Magnetics 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 original equipment manufacturers (OEMs) of card vending equipment in the transit market and other industries. It also has provided these products to cities in the U.S. either directly or through its OEM partners. Operating out of three buildings on a campus in High Point, NC, Electronic Data Magnetics occupies a combined 105,000 square feet of space for engineering, printing, encoding, converting, warehousing, distribution and administrative offices.
Widespread shutdowns and stay-in-place orders induced by the COVID-19 pandemic contributed to significant loss of ridership for Electronic Data Magnetics’ 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 Electronic Data Magnetics’ patented RFID card technology could bode well for how the company is positioned in the marketplace as the economy reopens.
“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,” Hank Waida, principal at SC&H Capital, said.
