PMGC Holdings signs LOI to acquire 76% stake in Arizona machining firm
PMGC Holdings (NASDAQ: ELAB) has signed a non-binding letter of intent to acquire a 76% controlling interest in a privately held Arizona-based precision machining and contract manufacturing company. The target's existing owners would retain the remaining 24% minority stake. PMGC says the deal would be settled in cash, though the final consideration remains subject to confirmatory due diligence.
Based on unaudited figures supplied by the target, the business generated approximately $5.46 million in revenue and roughly $1.05 million in EBITDA for fiscal year 2025, with management reporting an adjusted EBITDA margin of above 20% on a trailing-twelve-month basis. The company was founded in 2006 and serves aerospace, space, defence, semiconductor, medical device, and flow-control customers, with PMGC noting that the majority of revenue comes from repeat and long-term clients supported by a multi-year order backlog.
The target and its certifications
The Arizona firm specialises in high-tolerance, multi-axis CNC machining, including Swiss machining, multi-axis milling, and multi-tasking turning across materials such as titanium, Inconel, aluminium, and engineered plastics. It holds AS9100 compliance, ISO 9001:2015 certification, and ITAR registration, the combination of which qualifies it to serve regulated aerospace and defence programmes. PMGC notes that precision Swiss machining capacity is in structurally short supply domestically, and that the target's aerospace and defence share of revenue has grown from a single-digit proportion to more than 30% in recent years.
If the deal closes, the target would sit alongside PMGC's existing precision manufacturing subsidiaries: AGA Precision Systems, SVM Machining, and A&B Aerospace. PMGC expects to complete a two-year historical US GAAP financial audit and interim 2026 review before a Q4 2026 targeted close, though the company cautioned there is no assurance the transaction will complete on the stated terms, or at all.
Market context and reshoring tailwinds
The deal is framed by PMGC as consistent with a broader roll-up strategy in US domestic manufacturing, a theme that has gained commercial and political momentum as federal policy pushes to reduce dependence on offshore supply chains for defence and semiconductor-adjacent components. Reshoring incentives, combined with rising defence budgets and sustained semiconductor capital expenditure, have put certified precision machining capacity at a premium, particularly for suppliers carrying ITAR registration and aerospace-grade quality standards.
PMGC is a small-cap diversified holding company, and at $5.46 million in annual revenue the target is a modest-sized asset. The stated acquisition thesis, however, mirrors the strategy of several larger US industrial roll-up platforms that have found value aggregating certified machining shops serving the defence and aerospace primes. Competitive pressure in the sector comes from both private-equity-backed consolidators and the captive machining operations of tier-one aerospace suppliers.
The LOI includes a customary exclusivity period preventing the target from soliciting competing offers while PMGC completes due diligence. Definitive documentation, a board sign-off, and regulatory approvals are all outstanding. Investors should note that the financial figures cited are unaudited and that the company explicitly warns audited statements may differ materially.