Precision Aerospace & Defense and FACT II to Merge with Enterprise Value of $320M
Precision Aerospace & Defense and FACT II Acquisition announced that they have entered into a definitive business combination agreement. Upon closing of the proposed business combination, the combined company will operate under the name Precision Aerospace & Defense. The transaction implies an enterprise value of up to $320M for Precision Aerospace & Defense, assuming a $10.00 per share price and after giving effect to certain pending acquisitions. It is expected that the combined company will continue to be led by Precision Aerospace & Defense's existing management team, with Brent Borden remaining as CEO. In connection with the proposed business combination, Precision Aerospace & Defense has entered into a non-binding indicative term sheet with BC Partners relating to a potential credit facility and equity financing of up to an anticipated aggregate amount of $80M. The financing is subject to numerous conditions, including, without limitation, the completion of due diligence and the execution and delivery of definitive documentation. The company anticipates that the financing, together with the funds in FACT's trust account, would provide funding to strengthen PAD's balance sheet, finance strategic acquisitions, and support ongoing growth. In addition, the parties may seek other sources of financing in connection with the business combination and to bolster PAD's balance sheet and fund future growth initiatives. Following the business combination, Precision Aerospace & Defense's current shareholders are expected to own approximately 59% of the combined company's outstanding shares. The business combination is expected to be completed in the first half of 2026, subject to the approval of the parties' shareholders, any applicable regulatory approvals, the approval for listing by Nasdaq of the combined company's common stock and warrants, and other customary closing conditions. Upon closing, the combined company will be renamed Precision Aerospace & Defense, and the combined company's common stock and warrants are anticipated to be listed on the Nasdaq Stock Market under the ticker symbol (PAD).
