ELAB · PMGC Holdings Inc.

PMGC Holdings Inc. has executed its roll-up strategy in U.S. precision manufacturing by acquiring A&B Aerospace, Inc., a 76-year-old AS9100D-certified CNC machining firm specializing in high-tolerance components for aerospace, defense, and industrial markets. The $4.5 million cash deal, closing on May 12, 2026, targets key customers like Boeing, Honeywell, and Moog, leveraging A&B's entrenched relationships and technical barriers to entry. Consideration includes a $225,000 holdback for specific litigation (Salvador Rivera matter) and requires sellers to deliver at least $300,000 closing cash, with pegged net working capital of $855,669. Post-closing adjustments ensure alignment on final cash and working capital via a 90-day closing statement process, potentially involving an independent accountant. Continuity is preserved through a new facility lease with Malcolm E. Smith and Mary B. Smith Trust, retention of President Jack Badeau under an employment agreement, and seller commitments for 6-month transition services plus a 3-year California non-compete. A&B's unaudited financials show improving profitability (TTM net income $340K) and strong liquidity (Feb 2026 cash $682K, current ratio 3.9x), fitting PMGC's platform amid aerospace production ramps and defense spending growth. Pro forma balance sheet reflects preliminary purchase accounting with $1.36M goodwill and $1.5M intangibles. This fifth acquisition in 12 months scales PMGC's exposure to resilient, onshorable supply chains.