Precision Aerospace & Defense Group to Merge with FACT II Acquisition Corp, Valued at $320 Million
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 01 2025
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Should l Buy FACT?
Source: Newsfilter
- Merger Agreement: Precision Aerospace & Defense Group has entered into a merger agreement with FACT II Acquisition Corp, valuing the transaction at up to $320 million, which is expected to provide significant growth capital and further solidify its market position in the aerospace and defense sectors.
- Financing Strategy: PAD has signed a non-binding term sheet with BC Partners for a potential credit facility and equity financing of up to $80 million, which will enhance its balance sheet and support future strategic acquisitions.
- Management Continuity: Post-merger, PAD's existing management team will continue to lead the new company, ensuring business continuity and leveraging their expertise in the aerospace and defense sectors to drive growth.
- Market Outlook: The merger is anticipated to close in the first half of 2026, and by combining resources and customer bases, PAD will be better positioned to meet the increasing demands of the aerospace, defense, and space industries, driving long-term value creation.
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Analyst Views on FACT
About FACT
FACT II Acquisition Corp. is a blank check company. The Company is formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. The Company has not selected any specific business combination target. The Company has not generated any revenue nor engaged in any business activities.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Investor Day Rescheduled: Due to a winter storm impacting New York City, Precision Aerospace & Defense Group has postponed its Investor Day from February 25, 2026, to March 12, 2026, at 2:00 PM ET, providing an opportunity for in-depth analysis of the company's strategy and financial status.
- Business Combination Context: The Investor Day is linked to the proposed business combination with FACT II Acquisition Corp., where PAD's leadership will discuss market dynamics, business model, and strategic priorities, aiming to bolster investor confidence in the merger.
- Live Webcast Arrangements: The Investor Day will be streamed live on the company's website, and investors can register via email to attend in person, ensuring attendees receive real-time updates on the company's latest developments and future directions.
- Company Background Overview: Founded in 2016, Precision Aerospace & Defense Group specializes in high-precision components and testing solutions, rapidly growing through a targeted acquisition strategy and establishing a strong customer base across key markets, including military and commercial aviation.
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- Merger Agreement: Precision Aerospace & Defense Group has entered into a merger agreement with FACT II Acquisition Corp, valuing the transaction at up to $320 million, which is expected to provide significant growth capital and further solidify its market position in the aerospace and defense sectors.
- Financing Strategy: PAD has signed a non-binding term sheet with BC Partners for a potential credit facility and equity financing of up to $80 million, which will enhance its balance sheet and support future strategic acquisitions.
- Management Continuity: Post-merger, PAD's existing management team will continue to lead the new company, ensuring business continuity and leveraging their expertise in the aerospace and defense sectors to drive growth.
- Market Outlook: The merger is anticipated to close in the first half of 2026, and by combining resources and customer bases, PAD will be better positioned to meet the increasing demands of the aerospace, defense, and space industries, driving long-term value creation.
See More





