SC&H Capital, a leading investment bank specializing in M&A advisory, is pleased to share that its client, Electronic Data Magnetics, Inc. (“EDM” or the “Company”), has completed a going concern sale of its 38-year-old family-owned-and-operated manufacturing company to Paragon Group ID, S.A., a French Société Anonyme (“Paragon”).
EDM is certified to manufacture and supply technically advanced printed products—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. EDM has provided these products to nearly every major city in the U.S. either directly or through its OEM partners. However, widespread shutdowns and stay-in-place orders induced by Covid-19 contributed to a significant loss of ridership for EDM’s customers.
In late April of 2021, SC&H Capital’s Special Situations team was retained as the exclusive court-approved investment banker to seek a buyer for the Company. The team conducted an exhaustive marketing process that generated significant market interest and negotiated a transaction with Paragon, one of the world’s leading manufacturers of RFID products.
Paragon also purchased the related real estate from EDM’s affiliate, Hallman Properties. As a result of these transactions, the business will continue to operate on its existing 150,000 square-foot campus and employ a majority of the management team and 30 plus employees.
“We were extremely pleased to negotiate a transaction with Paragon,” said Hank Waida, Principal at SC&H Capital. “This allows EDM’s experienced workers to continue employment and gives the buyer the opportunity to expand their U.S. manufacturing capabilities.”
Other professionals who worked on the transaction include James C. Lanik, Jennifer Lyday and Evan Lee of Waldrep, Wall, Babcock & Baily; counsel for the Debtor, James R. Hundley of Wyatt, Early, Harris & Wheeler; counsel for Hallman Properties, Walter W. Pitt, Jr. and Daniel Bruton of Bell, Davis, & Pitt; and counsel for Truist Bank, John Magee of Aurora Management Partners, financial adviser to Truist Bank.