Precision Aerospace & Defense Group and FACT II Acquisition, a special purpose acquisition company, have signed a definitive business combination agreement to create a publicly listed aerospace and defense engineering and manufacturing company with an implied enterprise value of up to $320 million.
The combined company will operate as Precision Aerospace & Defense Group and continue under the leadership of PAD CEO Brent Borden, FACT said Monday. The business combination is expected to conclude in the first half of 2026, subject to shareholder and regulatory approvals.
“This proposed business combination with FACT and our transition to a public company will provide significant growth capital and is a strong validation of the business we have built,” Borden said.
“We expect that the anticipated proceeds from and in connection with this transaction will allow us to accelerate product development, invest in cutting-edge equipment, and pursue strategic acquisitions already identified in our pipeline,” he added.
What Does PAD Bring to the Merger?
PAD has expanded through targeted acquisitions into three divisions: engineering and sustainment, precision manufacturing and advanced non-destructive testing. The company provides design work; reverse engineering; component production; structural testing; and maintenance, repair and operations services to support defense, aerospace and space programs.
Its precision manufacturing division utilizes advanced computer numerical control machining and assembly capabilities, while its non-destructive testing division uses specialized testing and equipment to ensure the safety and durability of high-performance aerospace parts.
