PMGC Plans to Acquire 76% Controlling Interest in Arizona Company

PMGC announced that it has entered into a non-binding letter of intent to acquire a 76% controlling interest in a privately held, Arizona based U.S.-based precision machining and contract manufacturing company. The transaction would result in the target's existing owners retaining a 24% minority interest following closing. Based on unaudited financial information provided to PMGC by the target, the target generated approximately $5.46M in revenue and approximately $1.05M in EBITDA for fiscal year 2025. The LOI provides PMGC with a defined exclusivity period, during which the target and its representatives may not solicit or negotiate competing offers, providing the company with a protected window to complete confirmatory due diligence and negotiate definitive documentation. Founded in 2006, the target is a precision machining contract manufacturer specializing in high-tolerance, multi-axis CNC machining, including Swiss machining, multi-axis milling, and multi-tasking turning of complex metal and plastic components. The target has operated for nearly two decades and machines a broad range of materials, including aluminum, brass, stainless steel, titanium, Inconel, and engineered plastics, supported by value-added capabilities, such as laser marking, ultrasonic cleaning, microscopic deburring and microblasting, coordinating measuring machine inspection, and performing light assembly. Under the terms of the LOI, PMGC would acquire a 76% controlling interest in the target for cash, with the target's existing owners retaining the remaining 24% interest. The proposed consideration for this interest is subject to confirmatory due diligence. The LOI is non-binding, except with respect to customary provisions regarding exclusivity, confidentiality, expenses, and governing law, and completion of the transaction is subject to customary closing conditions, including the negotiation and execution of a definitive purchase agreement, the completion of a financial statement audit of the target, and applicable board and regulatory approvals. There can be no assurance that the transaction will be completed on the terms described herein, or at all. The company said, "We are currently engaging our auditors to begin a 2-year historical financial audit and interim review of 2026 financial records of the target-to-target completion and closing before Q4 2026. We cannot assure that the US GAAP audit can be completed and the closing will occur, or that audited financial statements will not significantly differ from the unaudited financial statements provided by the Target to us."