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Drone USA Acquires Howco Distributing to Add Facilities, Property; Michael Bannon Comments

acquisition,  mergerNew York City-based unmanned vehicle maker Drone USA has concluded its purchase of wholesale distribution company Howco Distributing Corp. for $3.5 million in cash, promissory notes and warrants.

Drone USA said Tuesday it will have access to Howco’s facility leases and related intellectual property and establish connections with the latter company’s suppliers and vendors.

Howco reported sales of $23.4 million in 2015 and earnings before interest, taxes, depreciation and amortization at close to $1.78 million.

Howco’s former owners Paul and Kathy Joy will join Drone USA as part of the acquisition and help oversee day-to-day operations.

Drone USA entered into a stock purchase agreement in August to buy Howco, a Vancouver, Washington-based company that provides spare and replacement parts to federal government agencies, U.S. military contractors and commercial customers worldwide.

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