This article is based on an official press release from Precision Aerospace & Defense Group, Inc. and FACT II Acquisition Corp.

Precision Aerospace & Defense Group to Go Public in $320 Million SPAC Merger

Precision Aerospace & Defense Group, Inc. (PADG), a Kansas-based holding company focused on aerospace engineering and manufacturing, has announced a definitive business combination agreement with FACT II Acquisition Corp. (NASDAQ: FACT). According to the official press release issued on December 1, 2025, the transaction values the combined enterprise at approximately $320 million.

Upon closing, which is expected in the first half of 2026, the combined company will operate under the name Precision Aerospace & Defense Group, Inc. and is expected to trade on the Nasdaq Stock Market under the ticker symbol “PAD” for common stock and “PADWW” for warrants.

The deal represents a significant step for PADG, which operates as a vertically integrated provider of mission-critical solutions for the aerospace, defense, and space sectors. The company aims to utilize the proceeds from the transaction to accelerate product development, invest in advanced equipment, and fund further acquisitions within a fragmented supply chain.

Transaction Overview and Capital Structure

The merger is structured as a business combination with FACT II Acquisition Corp., a Special Purpose Acquisition Company (SPAC). As outlined in the announcement, the deal implies an enterprise value of $320 million for PADG. To support the company’s growth strategy, the transaction includes a potential $80 million credit facility and an equity financing arrangement with BC Partners.

PADG’s current management team, led by CEO Brent Borden, will continue to lead the combined entity. The capital injection is intended to provide the “dry powder” necessary for PADG to execute its “roll-up” strategy, acquiring smaller, specialized aerospace shops to build a consolidated Tier 1 supplier network.

Leadership and Governance

The leadership team brings significant industry and military experience to the public markets:

• Brent Borden (CEO): A former US Army Infantry Officer and Strategic Programs Development Leader at the Kansas City National Security Campus.
• Joe Thiewes (CFO): Formerly CFO of Aerodyn Engineering, with a background in manufacturing finance at GE and Parker Hannifin.
• Doug Melvin: Founder of Aerofab NDT, who joined the leadership team following PADG’s acquisition of his company.

Company Profile: A Vertically Integrated Platform

Headquartered in Overland Park, Kansas, PADG was founded in 2016 and has grown primarily through strategic acquisitions. The company distinguishes itself by integrating specialized capabilities across three primary divisions.

Note on Corporate Identity: PADG (Overland Park, KS) is a distinct entity and should not be confused with Precision Aerospace Corp (Grand Rapids, MI), Precision Aviation Group (Atlanta, GA), or Precision Aerospace LLC (Phoenix, AZ).

Operational Divisions

According to the provided research data, PADG operates through the following key segments:

• Engineering & Sustainment: This division focuses on reverse engineering and Maintenance, Repair, and Operations (MRO) to extend the lifecycle of legacy military systems. A key subsidiary here is Aerodyn Engineering (Indianapolis, IN), known for turbine innovation and high-performance testing.
• Precision Manufacturing: Utilizing advanced CNC machining, this division produces complex components for aerospace and nuclear applications. It includes V&M Precision Machining and Grinding (Brea, CA), an AS9100-certified facility.
• Advanced Non-Destructive Testing (NDT): This segment ensures the safety of high-performance parts. It was bolstered by the early 2024 acquisition of Aerofab NDT (Kent, WA), a specialist in custom NDT probes and transducers.

Strategic Rationale and Market Context

The decision to go public via a SPAC merger comes at a time of increased focus on defense modernization and supply chain resilience. Major Original Equipment Manufacturers (OEMs) are increasingly seeking robust, vertically integrated suppliers to replace fragmented networks of smaller machine shops.

PADG’s strategy aligns with these trends by positioning itself as a consolidated partner capable of handling complex manufacturing and sustainment tasks. Additionally, the company is targeting the “New Space” economy, where rapid prototyping and high-precision manufacturing are in high demand.

AirPro News Analysis

While the SPAC market has cooled significantly since the boom of 2020–2021, defense and aerospace remain resilient sectors due to geopolitical instability and guaranteed government spending. PADG’s focus on “sustainment”, keeping older military aircraft flying, provides a steady revenue baseline that may appeal to investors wary of purely speculative growth stories.

However, the success of this “roll-up” strategy relies heavily on integration. Merging distinct corporate cultures, from a California machine shop to a Washington NDT lab, presents operational challenges. Investors will likely scrutinize the company’s S-4 filing, once available, to verify historical revenue performance and the efficacy of past integrations.

Sources

Sources: GlobeNewswire (Press Release), PADG Official Website