Precision Aerospace & Defense Takes Flight to Public Market via SPAC Deal

OVERLAND PARK, KS – December 01, 2025

In a strategic move poised to reshape a segment of the aerospace and defense supply chain, Precision Aerospace & Defense Group, Inc. (PAD) announced it will become a publicly traded company on the Nasdaq. The path to public markets is being paved by a definitive merger agreement with FACT II Acquisition Corp., a special purpose acquisition company (SPAC), in a transaction that values PAD at an implied enterprise value of up to $320 million.

The deal, expected to close in the first half of 2026, will see the combined entity operate under the PAD name and trade under the ticker symbol "PAD." This transition from a rapidly growing private firm to a public entity is designed to inject significant growth capital, enabling PAD to accelerate its ambitious acquisition strategy and deepen its role as a critical solutions provider for the military, commercial aviation, and the burgeoning space economy.

Assembling a Vertically Integrated Powerhouse

Founded in 2016, PAD has methodically built a comprehensive platform that stands apart in a fragmented industry. Rather than specializing in a single niche, the company has integrated three complementary divisions—engineering & sustainment, precision manufacturing, and advanced non-destructive testing (NDT)—into a cohesive, one-stop-shop for its blue-chip clientele, which includes major defense contractors, OEMs, and U.S. government agencies.

The company's engineering and sustainment unit focuses on the crucial task of modernizing and extending the life of legacy military systems, a vital service as defense departments seek to maximize the operational readiness of existing fleets. This is complemented by a precision manufacturing division that leverages advanced CNC machining to produce complex, mission-critical components for everything from next-generation hypersonic flight systems to commercial airliners. Finally, its advanced NDT division ensures the structural integrity and reliability of these high-performance parts through specialized testing services, a non-negotiable requirement in an industry where failure is not an option.

This vertically integrated model offers a significant competitive advantage. By controlling the process from design and reverse engineering to manufacturing and final quality assurance, PAD can offer greater efficiency, reliability, and program management to its customers. Operating multiple AS9100-certified and ITAR-registered facilities underscores its commitment to the rigorous quality and security standards demanded by the defense sector.

The SPAC Fuel for an Acquisition Engine

The merger with FACT II is less a finish line and more of a starting gun for PAD's next growth phase. The transaction is structured to arm the company with substantial capital. This includes approximately $175 million in gross proceeds held in FACT II's trust account (subject to redemptions) and a non-binding term sheet with private equity firm BC Partners for a potential credit facility and equity financing of up to $80 million.

This infusion of capital is earmarked for a clear purpose: to fund PAD's "accretive, programmatic acquisition strategy." The aerospace and defense sector is currently undergoing a wave of consolidation as larger players and savvy investors look to secure supply chains and acquire innovative technologies. PAD's strategy is to continue snapping up smaller, highly specialized firms that add new capabilities and expand its "full suite of service solutions." The company's $320 million valuation already accounts for certain pending acquisitions, signaling that this M&A engine is already in motion.

For FACT II, led by CEO Adam Gishen, PAD represents an ideal target. Gishen, who has prior experience leading a SPAC that merged with Complete Solaria, and his team sought a company with strong fundamentals and a clear growth trajectory. Adam Gishen, Chief Executive Officer of FACT, noted in the announcement, “PAD’s strategic positioning at the nexus of aerospace and defense modernization...truly sets it apart. With a blue-chip customer base and multi-year contracts, PAD offers both stability and exciting growth prospects.” This sentiment reflects a growing investor appetite for defense-tech companies that provide tangible, mission-critical hardware and services.

Navigating a Dynamic Aerospace & Defense Market

PAD’s public debut comes at a pivotal moment for the industry. Geopolitical instability has prompted many NATO countries to increase defense spending, driving demand for both new platforms and the sustainment of existing assets. Simultaneously, the commercial space industry is expanding at an unprecedented rate, creating a new frontier for specialized manufacturing and testing services. PAD is strategically positioned to capture growth from all these vectors.

Its focus on legacy system sustainment directly addresses the multi-billion-dollar Maintenance, Repair, and Overhaul (MRO) market. Meanwhile, its advanced manufacturing capabilities make it a relevant partner for cutting-edge programs in hypersonics and space launch infrastructure. This diversified end-market exposure provides a natural hedge, allowing the company to thrive whether government budgets are flowing toward modernization or sustainment.

While the A&D landscape includes giants like Lockheed Martin and Northrop Grumman, PAD operates as a crucial link in the supply chain, competing with other specialized Tier 2 and Tier 3 suppliers. Its advantage lies in its integrated service offering, which can simplify procurement and enhance quality control for prime contractors who would otherwise have to manage multiple vendors.

The Path Forward to Commercialization

Upon closing, PAD’s current shareholders are expected to retain a majority stake of approximately 59% in the combined company, and the existing management team, led by CEO Brent Borden, will continue to lead operations from its Kansas headquarters. This leadership continuity is a critical factor for ensuring a smooth transition and the execution of the company's long-term vision.

As Brent Borden stated, “This proposed business combination...will provide significant growth capital and is a strong validation of the business we have built.” He emphasized that the proceeds would allow the company to "accelerate product development, invest in cutting-edge equipment, and pursue strategic acquisitions already identified in our pipeline."

For investors and industry observers, the key metrics to watch will be PAD's ability to successfully close and integrate its planned acquisitions, translate its robust backlog into consistent revenue growth, and maintain its high standards of quality and on-time delivery as it scales. The journey from a private, acquisition-focused firm to a public, integrated solutions provider is a complex one, but with a clear strategy and significant new capital, Precision Aerospace & Defense appears ready for takeoff.