The private equity firm AE Industrial Partners (AEI) on Tuesday said it acquired Jennings Aeronautics, Inc. (JAI), a designer, developer and manufacturer of small unmanned aircraft systems (SUAS). The firm is combining it with its portfolio company UAV Factory, scaling the company and further building its presence in the U.S, giving JAI an international presence, and strengthening its UAS and related offerings.
Terms of the deal were not disclosed. Following the acquisition, UAV Factory has about 200 employees. The company is based in Latvia and also has a facility in Bend, Ore. JAI is based in San Luis Obispo, Calif.
Going forward, UAV Factory will be led by CEO John Purvis, who was CEO of JAI. Josh Brungardt, who was an executive vice president at UAV Factory, will now be the company’s chief operating officer.
“Joining the UAV Factory team and the AEI family at this exciting time in the industry’s development is a game-changer for JAI and I’m honored to take the help of the combined company during this pivotal moment,” Purvis said in a statement. “We will now have more capital, operational expertise and an international footprint to allow us to grow our business and support our customers better than we could alone.”
JAI designs SUAS for military, law enforcement and industrial applications, and provides ground control stations and propulsion systems. The company’s capabilities include electric vertical take-off and a ruggedized oxide fuel cell.
JAI also provides a UAS imaging turret system and avionics suites.
UAV Factory offers several small gas-powered UAS designs for shorter and longer-endurance missions, including a vertical take-off-and-landing system. The company also provides electro-optic and infrared payloads, ground control stations, launchers and components.
The acquisition of JAI is the first since AEI launched its new UAS platform with the purchase of UAV Factory in January. The private equity firm is committed to growing the platform organically and through further acquisitions.
“AEI is committed to building a unique and differentiated platform with proprietary technology in the unmanned and autonomous market, and with the addition of JAI and its innovative SUAS offerings, we have taken a huge step forward in reaching this goal,” Jeffrey Hart, principal at AEI, said in a statement. “JAI also affords us tremendous manufacturing and engineering capabilities and a footprint that will allow us to quickly scale and meet the growing demands of our customers.”
William Blair and PricewaterhouseCoopers served as financial advisers to AEI and UAV Factory.