PMGC Holdings Inc. (Nasdaq: ELAB), a diversified public holding company, has signed a non-binding Letter of Intent (LOI) to acquire a California-based CNC machining business with over 35 years of operating history.
Target Company Overview
The unnamed company specializes in precision CNC milling and turning, mold manufacturing, and working with advanced metals such as titanium and Inconel. It holds AS9100D and ISO 9001:2015 certifications, which are recognized international standards often required by aerospace, defense, and industrial manufacturers.
The company serves clients in the aerospace, defense, space, commercial, and industrial sectors. Despite having no dedicated sales team or marketing budget, it has built long-term relationships with customers through repeat business and referrals. PMGC views this as a sign of strong customer trust and consistent quality.
In 2024, the company generated approximately $1.4 million in revenue and posted an adjusted EBITDA of around $215,000.
Strategic Fit for PMGC
PMGC sees the planned acquisition as aligned with its strategy to invest in profitable, U.S.-based manufacturing businesses with growth potential. According to the company, the target stands out for its technical capabilities, stable customer base, and demand across key industries.
The company also believes broader geopolitical trends and supply chain challenges are creating new momentum to rebuild U.S. manufacturing. Legislation such as the CHIPS and Science Act and the Inflation Reduction Act is channeling federal investment into domestic industry. PMGC believes firms with certifications like AS9100D and ISO 9001:2015 are well-positioned to benefit, especially in defense and aerospace sectors where such standards are mandatory.
“The acquisition reflects our commitment to building a portfolio of resilient, high-performing businesses,” said Graydon Bensler, CEO of PMGC Holdings Inc. “With its strong certifications, expertise in specialty metals, and deep relationships in critical industries, this company brings both operational strength and strategic value to our platform.”
Next Steps
The acquisition is still subject to several standard conditions. These include completing due diligence, receiving corporate approvals, and finalizing definitive agreements. PMGC noted there is no guarantee the transaction will close.
