PMGC Holdings Inc., a diversified holding company currently executing a targeted roll-up strategy in U.S.-based precision manufacturing companies, has acquired A&B Aerospace, Inc..

Founded in 1948, A&B Aerospace is a precision machining and aerospace manufacturing company specialising in high-tolerance parts and assemblies for the aerospace industry. Headquartered in Azusa, California, the company provides advanced CNC machining, honing, grinding, and precision deburring services, supporting a wide range of aerospace and defence applications. A&B Aerospace operates more than twenty modern CNC machines with full 5-axis machining capabilities and maintains AS9100 and ISO 9001 certifications. Known for its long-standing reputation for quality, reliability, and on-time delivery, the company serves leading aerospace customers with both metal and non-metal machining solutions while maintaining tolerances as tight as ±0.0001".

The acquisition of A&B Aerospace marks PMGC's fifth acquisition in the past twelve months and advances the Company's previously announced roll-up strategy focused on assembling a U.S. precision manufacturing platform of AS9100D-certified CNC machining businesses serving the aerospace, defence, and industrial end markets.

A&B Summary Financial Information

For the trailing twelve-month period ended February 28, 2026, A&B Aerospace recorded approximately $5.0M in revenue and approximately $610K in management-adjusted EBITDA.

(Management-adjusted EBITDA is a non-GAAP financial measure). The figures above are unaudited and have not been audited or reviewed by an independent registered public accounting firm.

Summary of Transaction

PMGC acquired 100% of the issued and outstanding shares of A&B Aerospace from its selling shareholders, on a cash-free, debt-free basis. The base purchase price is $4,500,000 in cash, consisting of $4,275,000 paid at closing and a $225,000 indemnification holdback retained by PMGC at closing. The purchase price is subject to a customary post-closing adjustment based on a final cash balance and a net working capital adjustment relative to a net working capital target, as set forth in the acquisition agreement. In connection with the closing, Jack Badeau, the current President and long-tenured leader of A&B Aerospace, will continue serving in his role pursuant to an employment agreement. A&B Aerospace will also continue operating from its existing facility in Azusa, California under a lease entered into at closing.

Strategic Rationale: A&B Aerospace fits PMGC's platform thesis

PMGC's acquisition strategy targets businesses positioned within durable, high-value industrial verticals. PMGC believes A&B Aerospace exemplifies the core attributes the Company seeks in its precision manufacturing platform: high technical barriers to entry, mission-critical applications, an established blue-chip customer base, and direct exposure to U.S. industrial and defence supply chain demand. As prime defence contractors and Tier 1 aerospace customers increasingly prioritise onshoring and supply chain security, demand for certified, U.S.-based precision shops continues to grow. The Company believes that once a precision machining supplier is qualified on a customer program, customer retention is materially reinforced by the rigorous requalification processes and first article inspection requirements associated with changing manufacturers, creating durable, hard-to-displace customer relationships. PMGC believes A&B Aerospace, with 76 years of continuous operating history, AS9100D and ISO 9001:2015 certifications, and entrenched relationships with Tier 1 customers including Boeing, Honeywell, and Moog, reflects exactly this profile.

Aerospace and Defence Market Tailwinds

Commercial aerospace is in the midst of a multi-year production ramp. Boeing's 2025 Commercial Market Outlook forecasts global demand for approximately 43,600 new commercial aircraft over the 20-year period from 2025 through 2044, with the global commercial fleet projected to nearly double to approximately 49,600 aircraft. Sustained backlog growth at the major airframers is translating into higher build rates and a corresponding step-up in demand across the aerospace component supply chain.

On the defence side, U.S. budget authority continues to expand. Congress enacted approximately $839 billion in discretionary FY2026 appropriations for the U.S. Department of Defence under the Department of Defence Appropriations Act, 2026. PMGC believes federal reshoring and onshoring initiatives, supply chain security priorities, and continued procurement and sustainment funding for legacy and next-generation programs are driving a structural increase in demand for certified, U.S.-based precision manufacturers.

On the supply side, qualified domestic manufacturers holding AS9100D certification represent a narrow segment of the broader U.S. machining industry. OEMs and Tier 1 aerospace and defence customers are increasingly consolidating onto a smaller number of reliable, scalable, qualified suppliers, and the rigorous requalification and first article inspection requirements associated with changing manufacturers create durable, hard-to-displace customer relationships. PMGC believes the combination of expanding aerospace and defence demand and a structurally constrained supply of qualified domestic precision manufacturers creates a favourable long-term backdrop for the Company's precision manufacturing platform.