PMGC Holdings Inc. (NASDAQ: ELAB) (“PMGC” or the “Company”), a diversified public holding company announced that it has completed the acquisition of SVM Machining, Inc. (“SVM”).
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.
Discover the latest trends and insights—explore the Business Insights Journal for up-to-date strategies and industry breakthroughs!
