Drone USA, Inc. a developer and manufacturer of low altitude Unmanned Aerial Vehicles (“UAV”) and related technologies, today announced that it has signed a Letter of Intent (“LOI”) to acquire a global engineering, procurement, manufacturing and materials management company that specializes in military and commercial equipment and provisions. If acquired, the business will become an integral part of the growing aerospace, UAV and related technologies business for Drone USA.
The proposed transaction will significantly expand Drone USA’s offerings to include manufacturing capabilities of engine and spare parts for commercial, recreational and military aircraft, a support staff and a 21,000 square foot warehouse. For the trailing twelve months ended October 31, 2016, the business reported revenue of $15.75 million and earnings before interest, taxes, depreciation and amortization of approximately $1.6 million.
Michael Bannon, Drone USA’s Chief Executive Officer commented, “We were initially attracted to this business due to its outstanding reputation within the industry and upon further due diligence noticed synergies between the prospective acquisition and Drone USA in terms of an aligned customer base that includes foreign military and police accounts. In addition, over its history, the acquisition has developed strong ties to manufacturers globally, and we are confident that the proposed transaction will fit into our business model as well as add value for our shareholders over the long term. We look forward to moving forward with a definitive agreement and will continue to aggressively pursue potential acquisitions within the UAV and aerospace industry that have proven quality systems and products, as well as low-cost sourcing and supply chain management already in place.”
For additional information about Drone USA, please visit www.droneusainc.com.