(José Niño, Headline USA) Eric Trump is investing in an Israeli drone manufacturer competing for Pentagon contracts while his father controls the executive branch overseeing defense procurement, according to the Wall Street Journal.
The president’s son serves as a strategic investor in Xtend as part of a $1.5 billion deal taking the company public through merger with a small Florida construction firm. Battle tested during Israeli military operations in Gaza over recent years, Xtend markets certain products as “low cost per kill” munitions aligned with US defense directives for modern warfare.
The WSJ reported that the company opened a Florida facility and has already obtained a multimillion dollar Pentagon contract while participating in an ongoing Defense Department competition for new suppliers.
“We are acquiring the resources we need to scale our manufacturing capabilities in the U.S. and gaining access to the U.S. public markets,” Xtend Chief Executive Aviv Shapira stated.
The WSJ reported that Trump invested through a private placement in the deal. Donald Trump Jr also maintains an investor and adviser role in Unusual Machines, a separate drone company involved in the transaction.
The merger represents the latest expansion of the first family’s business operations since President Trump returned to the White House, extending into numerous sectors the Trump administration regulates.
The Xtend transaction culminated months of dealmaking. Dominari Holdings, a Trump Tower based financial firm, organized a $44 million private placement last year into JFB, a Florida contractor whose recently publicized projects include hotel redevelopment plans and public high school expansion, as the WSJ reported. Publicly traded JFB shares soared following the investment announcement before dropping 43 percent Tuesday.
Xtend intends to access public markets through JFB’s Nasdaq listing. Stifel advised the Israeli company. JFB announced Tuesday in a securities filing it appointed Stefan Passantino, a former White House lawyer who previously worked with the Trump Organization, to its board.
Xtend ranks among companies capitalizing on American and allied efforts to maintain competitive advantages. After the October 7, 2023 Hamas attack, Shapira told the WSJ his firm’s products helped the Israel Defense Forces map terrain, explore buildings and eliminate booby traps around Hamas underground tunnel networks.
A November press release announcing Pentagon contracts stated Xtend’s “one-way” drone kits would be specially manufactured for small tactical teams carrying out “irregular warfare operations.”
That business could expand substantially. The Defense Department this month named Xtend among 25 companies invited to participate in the first phase of its Drone Dominance Program, a procurement initiative ultimately slated to reach $1.1 billion in total value.
José Niño is the deputy editor of Headline USA. Follow him at x.com/JoseAlNino
