PMGC signs letter of intent to acquire aerospace CNC machining firm

Published 24/06/2025, 13:38
PMGC signs letter of intent to acquire aerospace CNC machining firm

NEWPORT BEACH, Calif. - PMGC Holdings Inc. (NASDAQ:ELAB), a micro-cap company with a market capitalization of $2.8 million, announced Tuesday it has entered into a non-binding letter of intent to acquire a U.S.-based CNC machining company that specializes in manufacturing components for aerospace and defense sectors. According to InvestingPro data, PMGC maintains a strong liquidity position with a current ratio of 8.97x, indicating substantial cash reserves relative to short-term obligations.

The target company, established in 1948, holds AS9100 and ISO 9001 certifications and operates a facility with 5-axis CNC machines and advanced systems. It reported approximately $4.5 million in revenue and $500,000 in adjusted EBITDA for 2024. This potential acquisition comes as PMGC faces challenges, with InvestingPro analysis showing the company’s stock has declined 87% year-to-date and currently maintains a "Weak" overall financial health score of 1.6 out of 5.

The acquisition target serves commercial and defense aerospace customers with production capabilities for components requiring ultra-tight tolerances, according to the press release statement.

"This company exemplifies the kind of certified, mission-critical supplier we aim to partner with," said Graydon Bensler, Chief Executive Officer of PMGC.

The potential acquisition aligns with PMGC’s strategy to acquire specialized U.S. manufacturers in sectors where certifications and technical expertise are valued. The aerospace sector is experiencing increased demand for certified domestic suppliers amid pushes toward onshoring and supply chain resiliency.

The transaction remains subject to several conditions including completion of due diligence, corporate approvals, and execution of definitive documentation. PMGC noted in its announcement that there is no assurance the acquisition will be completed.

PMGC Holdings operates as a diversified holding company with three wholly owned subsidiaries: Northstrive Biosciences Inc., PMGC Research Inc., and PMGC Capital LLC.

In other recent news, PMGC Holdings Inc. announced its intent to acquire two companies, marking significant steps in its merger and acquisition strategy. The company signed a non-binding Letter of Intent to purchase a California-based CNC machining company, which generated approximately $1.4 million in revenue and $215,000 in adjusted EBITDA in 2024. Additionally, PMGC plans to acquire a U.S.-based electronics contract manufacturer with reported revenue of approximately $699,000 and $173,000 in adjusted EBITDA for the same year. Both acquisitions are pending customary conditions, including due diligence and corporate approvals.

In related developments, Northstrive Biosciences Inc., a subsidiary of PMGC Holdings, completed Phase I research for its oral treatment EL-22, targeting muscle-wasting conditions. The company also filed four new patent applications for obesity treatments, including the use of EL-22 and EL-32 in various therapeutic contexts. Furthermore, PMGC Holdings entered into a secondment agreement with Northstrive Companies Inc., allowing temporary employee assignments to PMGC. These strategic moves reflect PMGC’s ongoing efforts to expand its portfolio and strengthen its position in the manufacturing and biopharmaceutical sectors.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.