PMGC Holdings Inc., a diversified public holding company announced that it has completed the acquisition of SVM Machining, Inc..

Founded in 1997 by Mark Serpa, SVM (aka Silicon Valley Manufacturing) is a Northern California-based ISO 9001:2015 Certified CNC precision machining and manufacturing services company serving medical, aerospace, biotech & pharmaceutical, semiconductor, and transportation markets.

This transaction represents PMGC’s third California based CNC machine shop acquisition to date, expanding PMGC’s growing footprint in precision manufacturing and furthering its strategy to assemble a multi-site machining platform serving aerospace, defence, medical and industrial industries.

SVM Overview

SVM is a precision manufacturing partner specializing in custom CNC-machined components, delivering high-quality, engineered solutions for customers in the following industries:

- Medical (including surgical robotics components)

- Aerospace (including satellite/spaceflight, UAV components)

- Biotech & Pharmaceutical (including lab automation and analytical instruments)

- Semiconductor (including wafer handling fixtures and cleanroom-compatible components)

- Transportation (including automotive and specialty vehicle parts)

- For the fiscal year ended December 31, 2024, SVM reported revenue of $3,042,701.

Summary of Material Transaction Terms

PMGC acquired 100% of the issued and outstanding shares of SVM from the seller, on a cash-free, debt-free basis.

- Base Purchase Price: $2,250,000 in cash, consisting of $2,000,000 paid at closing and a $250,000 indemnification holdback retained by PMGC at closing.

- Cash / Working Capital Mechanics: Purchase price includes a defined Final Cash Balance and a net working capital adjustment relative to a “Net Working Capital Target.”

- Earnout Consideration: In addition to the base purchase price, the seller may be entitled to receive contingent earnout consideration based on SVM achieving certain defined revenue performance levels during a specified post-closing measurement period.

- Timing of Earnout Payment: Any earned earnout amounts, if applicable, would be payable within 10 days following PMGC’s filing of its Form 10-K for the fiscal year that includes the applicable earnout measurement period.