Air Industries Group has announced a merger with Tenax Aerospace, a transaction designed to combine capabilities in special mission aviation and precision aerospace manufacturing. Under the agreement, Tenax shareholders will hold approximately 95% of the combined entity, while Air Industries' existing shareholders will retain roughly 5% ownership. The deal reflects a significant recapitalization of Air Industries, positioning the merged company to serve expanded market segments within the aerospace sector.
Financial projections for the combined entity show revenue of $183.3 million and adjusted EBITDA of $65 million for 2025, with anticipated growth to $210 million in revenue and $75 million in adjusted EBITDA by 2026. The forecasts assume successful integration of operations and continued customer demand in the aerospace manufacturing and special mission aviation markets.
Market reaction to the merger announcement proved negative, with Air Industries shares declining 6.58% to close at $2.98 on Tuesday. The decline reflects investor concerns regarding the substantial dilution to existing shareholders' ownership stakes in the restructured company.