Drone USA Inc. announced that it has submitted a letter of intent to acquire a West Coast distributor of spare and replacement equipment and machine parts to DoD and commercial customers. The undisclosed company generated revenues of $22.3 million and EBITDA of $1.93 million for the twelve month period ending May 31, 2016.
Drone USA Inc. manufactures low altitude UAV's and related technologies so why would they acquire a parts supplier? According to the press release, the acquisition will strengthen the company's DoD distribution network and will be accretive to earnings. The deal consideration will be in stock. No other deal terms were disclosed.
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