PMGC Holdings intends to acquire a U.S. electronics manufacturing firm, enhancing its M&A strategy and market position.
Quiver AI Summary
PMGC Holdings Inc. has signed a non-binding Letter of Intent to acquire a cash-flow positive U.S.-based electronics contract manufacturing company with over 40 years of experience, specializing in high-precision electrical and mechanical assembly, including printed circuit board manufacturing. This marks PMGC's second acquisition attempt since April, highlighting the progress of its merger and acquisition strategy. The target company, established in the 1980s, serves commercial and industrial clients while generating approximately $699,000 in revenue and $173,000 in adjusted EBITDA in 2024. PMGC's management sees this acquisition as an opportunity to enhance operations and customer acquisition amidst a national trend towards revitalizing domestic manufacturing, aided by supportive federal initiatives. The deal is still subject to due diligence and other customary conditions.
Potential Positives
- PMGC is pursuing a proactive M&A strategy, having signed a non-binding Letter of Intent to acquire a profitable electronics contract manufacturing company, indicating strong growth potential.
- The target company has over 40 years of operational history and a track record of generating positive cash flow, enhancing PMGC's portfolio stability.
- This acquisition positions PMGC favorably within a growing U.S. electronics manufacturing sector, benefiting from national initiatives aimed at revitalizing domestic manufacturing.
- The target's capabilities align with PMGC's strategic focus on high-precision manufacturing, enhancing operational strengths and customer acquisition opportunities.
Potential Negatives
- The press release highlights that the acquisition is pending and subject to customary conditions, including due diligence and corporate approvals, which introduces uncertainty about whether the deal will close.
- The company has issued a caution regarding forward-looking statements, indicating potential risks and uncertainties, which might concern investors about the reliability of the company's future performance expectations.
- The targeted company, while cash-flow positive, generated only $699,000 in revenue and $173,000 in adjusted EBITDA in 2024, which may suggest limited growth potential and raises questions about the strategic fit for PMGC's broader objectives.
FAQ
What is PMGC Holdings Inc.'s recent acquisition?
PMGC Holdings Inc. has signed a non-binding Letter of Intent to acquire a cash-flow positive electronics contract manufacturing company.
What services does the acquisition target provide?
The Target specializes in high-precision electronics manufacturing, including electrical and mechanical assembly, printed circuit card assembly, and functional testing.
How much revenue did the Target company generate in 2024?
The Target company generated approximately $699,000 in revenue and $173,000 in adjusted EBITDA in 2024.
What are the strategic benefits of this acquisition for PMGC?
This acquisition aligns with PMGC's strategy of acquiring strong U.S. businesses with durable cash flow and potential for growth.
What supports the growth of the U.S. electronics manufacturing sector?
The growth is supported by federal initiatives like the CHIPS and Science Act, focusing on domestic manufacturing and reshoring supply chains.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
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Full Release
- Acquisition Target Specializes in High-Precision Electrical and Mechanical Assembly, Including Printed Circuit Board Manufacturing for Commercial and Industrial Customers Across the U.S.A.
- PMGC’s second pending acquisition since April, demonstrates that its M&A strategy is well underway, with additional deals expected this year.
NEWPORT BEACH, Calif., June 09, 2025 (GLOBE NEWSWIRE) -- PMGC Holdings Inc. (Nasdaq: ELAB) (the “Company,” “PMGC,” “we,” or “us”), a diversified public holding company, is pleased to announce the signing of a non-binding Letter of Intent (“LOI”) to acquire a U.S.-based, cash-flow positive electronics contract manufacturing company with over 40 years of operational history.
About the Target Company
Established in the 1980s, the Target company (“Target”) is a full-service provider of high-precision electronics manufacturing and assembly services. With core capabilities, including electrical and mechanical assembly, printed circuit card assembly and functional testing, and electronic component testing, the Target serves a range of commercial and industrial clients. It also supports small-batch production and prototyping, offering both consignment and turnkey solutions.
The Target generated approximately $699,000 in revenue and $173,000 in adjusted EBITDA in 2024.
Strategic Rationale
This acquisition aligns with PMGC’s approach of acquiring US based, fundamentally strong businesses with durable cash flow and growth potential. PMGC Management believes the Target stands out for its longstanding customer relationships and strong control over its operations and manufacturing abilities.
“We are thrilled to partner with a business that embodies the precision and reliability that we believe defines American manufacturing,” said Graydon Bensler, Chief Executive Officer of PMGC Holdings Inc. “This company has built a legacy of excellence, and we believe there is a compelling opportunity to scale operations and enhance customer acquisition through strategic support and platform integration.”
Industry Tailwinds
This acquisition comes at a time of renewed national focus on revitalizing domestic manufacturing. With ongoing support from federal initiatives such as the CHIPS and Science Act, the reshoring of electronics supply chains continues to gain momentum. The U.S. electronics manufacturing services (EMS) sector is positioned for growth as industries prioritize secure, localized, and high-quality production partners. PMGC believes this transaction places the company at the intersection of that movement, offering exposure to a high-integrity operator deeply embedded in that ecosystem.
The closing of this acquisition is subject to customary conditions, including completion of due diligence, certain corporate approvals, and execution and delivery of definitive documentation. We cannot assure that closing of the acquisition will occur.
About PMGC Holdings Inc.
PMGC Holdings Inc. is a diversified holding company that manages and grows its portfolio through strategic acquisitions, investments, and development across various industries. Currently, our portfolio consists of three wholly owned subsidiaries: Northstrive Biosciences Inc., PMGC Research Inc., and PMGC Capital LLC. We are committed to exploring opportunities in multiple sectors to maximize growth and value. For more information, please visit https://www.pmgcholdings.com.
Forward-Looking Statements
Statements contained in this press release regarding matters that are not historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Words such as “believes,” “expects,” “plans,” “potential,” “would” and “future” or similar expressions such as “look forward” are intended to identify forward-looking statements. Forward-looking statements are made as of the date of this press release and are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy, activities of regulators and future regulations and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results. Therefore, you should not rely on any of these forward-looking statements. These and other risks are described more fully in PMGC Holdings’ filings with the United States Securities and Exchange Commission (“SEC”), including the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on March 28, 2025, and its other documents subsequently filed with or furnished to the SEC. Investors and security holders are urged to read these documents free of charge on the SEC’s web site at www.sec.gov. All forward-looking statements contained in this press release speak only as of the date on which they were made. Except to the extent required by law, the Company undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made.
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