Precision Aerospace Nears NYSE Debut in $320M SPAC Merger

By Patrick Griffin

OVERLAND PARK, Kan. & NEW YORK – April 16, 2026 – Precision Aerospace & Defense Group, Inc. (PAD) has moved one step closer to becoming a publicly traded entity, a significant development for a company deeply embedded in the U.S. military and space exploration supply chains. In partnership with FACT II Acquisition Corp. (FACT), a special purpose acquisition company, the firm announced the public filing of an amended Form S-4 registration statement with the U.S. Securities and Exchange Commission (SEC).

This updated filing, which includes revised financial data and more detailed disclosures about their proposed business combination, signals advancing momentum for a deal first announced in late 2025. The transaction, which values PAD at an enterprise value of up to $320 million, is designed to propel the engineering and manufacturing specialist onto the New York Stock Exchange under the ticker symbol “PAD.” The move comes as the company reports a swelling backlog and expanding relationships with major players like SpaceX, NASA, and Boeing, positioning it as a pivotal new public player in a high-stakes industry.

The SPAC Pathway in a Renewed Market

The decision by PAD and FACT to pursue a SPAC merger places them within a cautiously resurgent market. After a period of intense scrutiny and a significant slowdown, the SPAC market showed renewed signs of life through 2025, characterized by more experienced sponsors, improved governance, and a focus on high-quality targets. For a high-growth, capital-intensive company like PAD, the SPAC route offers a potentially faster and more certain path to the public markets compared to a traditional IPO, providing access to capital needed for expansion, acquisitions, and technology development.

However, the path is not without its challenges. The SPAC market remains defined by high shareholder redemption rates, where investors can pull their money out of the trust before a deal closes. This risk underscores the importance of a compelling target company. To that end, PAD and FACT have been proactive in their investor outreach, hosting an Investor Day in New York on March 12, 2026, to detail the company's strategic priorities and robust financial targets. The goal was to build confidence and demonstrate that PAD is not just another merger candidate, but a durable business with a clear growth trajectory. The transaction's success now hinges on securing the approval of FACT shareholders and clearing final regulatory and listing hurdles.

A Vertically Integrated Powerhouse

At the heart of this deal is PAD's impressive operational footprint. Founded in 2016 and headquartered in Overland Park, Kansas, the company has rapidly built a vertically integrated platform that serves critical needs across the aerospace, defense, and space sectors. Its business is structured across three key divisions: Engineering & Sustainment, Precision Manufacturing, and Advanced Non-Destructive Testing (NDT).

This diversified model allows PAD to offer end-to-end solutions, from reverse-engineering and modernizing legacy military aircraft components to manufacturing high-precision parts for next-generation systems. The company operates multiple AS9100-certified and ITAR-registered facilities, strategically located near major U.S. aerospace hubs and military installations, ensuring compliance with the stringent quality and security requirements of its customer base.

Operational momentum appears strong. The company recently reported a backlog approaching $90 million and highlighted significant demand in its Engineering & Sustainment division, with notable work supporting the B-1B Lancer strategic bomber program, as well as contracts with GE Aerospace and ProEnergy. Its advanced NDT division, which specializes in ensuring the structural integrity of critical components without causing damage, is also gaining significant traction. PAD has touted its proprietary phased array ultrasonic testing processes, developed through close collaboration with SpaceX, and is engaged in further work with NASA and Boeing, placing it at the forefront of quality assurance for the most demanding applications in space flight and aviation.

Financial projections shared with investors paint a picture of aggressive growth. The company is targeting pro forma revenues of $130.8 million and pro forma EBITDA of $25.2 million for 2026, figures that rely in part on the successful integration of pending acquisitions. This strategy of combining organic growth with targeted M&A has been central to PAD’s expansion and its ability to build a blue-chip customer base that includes leading defense primes and the U.S. Department of War.

Fortifying the Domestic Supply Chain

The planned public listing of Precision Aerospace & Defense comes at a critical time for the global and domestic A&D supply chain. Geopolitical tensions and lessons learned from recent global disruptions have intensified the focus on shoring up domestic manufacturing capabilities, particularly for mission-critical defense and aerospace components. A stronger, publicly-funded PAD could play an enhanced role in this ecosystem.

As a vertically integrated provider, PAD offers a level of supply chain control and reliability that is increasingly valuable. By managing everything from initial design and engineering to final testing and sustainment, the company can mitigate risks associated with relying on a fragmented network of external suppliers. This capability is especially important for legacy military platforms, where original components may be obsolete and require sophisticated reverse-engineering and modernization to keep vital assets operational.

The Non-Destructive Testing market for aerospace and defense alone is a multi-billion dollar industry, projected to grow significantly in the coming years, driven by aging aircraft fleets, the introduction of new materials, and ever-increasing safety standards. PAD's advanced capabilities, particularly its specialized work with commercial space leaders, position it to capture a meaningful share of this expanding market. With access to public capital, the company will be better equipped to invest in new technologies, expand its capacity, and potentially acquire smaller firms to further bolster its integrated platform.

Leading the combined entity will be PAD’s existing management team, helmed by CEO Brent Borden, a U.S. Military Academy at West Point graduate with a distinguished career in defense and aerospace. He is supported by an experienced executive team and board. The FACT II team, led by CEO Adam Gishen, a veteran of Credit Suisse, brings extensive capital markets and financial management experience to the table, a combination of operational and financial expertise intended to guide the newly public company through its next phase of growth.