Drone USA Acquires Howco Distributing Corp.

Drone USA Inc. announced that it has acquired Howco Distributing Corp., a provider of construction, transportation, mining and heavy equipment parts to both commercial and government clients.  In 2012, Howco won DLA’s Bronze Supplier Award.  The company reported 2015 revenues of $23.4 million and EBITDA of $1.78 million. 

Howco was acquired for $3.5 million using $2.6 million in cash, a promissory note for $900K and 500K warrants with an exercise price of $0.01 per share.  Wellington Shields & Co. LLC was the lead placement agent.