Company Overview - PMGC Holdings Inc. has terminated a non-binding letter of intent to acquire a U.S.-based electronics manufacturing company, originally announced on June 9, 2025 [1] - Following a strategic review, the company has decided to focus its M&A efforts on CNC machine shops servicing aerospace, defense, and industrial sectors, aligning with its long-term growth strategy [2] Industry Outlook - The U.S. machine shop services market was estimated at approximately USD 44.7 billion in 2024, with around 17,100 companies employing over 259,000 people [3] - The global machining market is projected to grow from USD 402.6 billion in 2024 to USD 755.7 billion by 2034, at a CAGR of 6.5% [3] - The U.S. machine tools segment, primarily CNC metal-cutting, was valued at about USD 12.7 billion in 2025, expected to grow at a 3.4% CAGR from 2025 through 2030 [3] Demand and Growth Drivers - Demand from aerospace, defense, and industrial sectors is strong, with new U.S. metalworking machinery orders surging 32.6% from February to March 2025, reaching USD 515.8 million [4] - Aerospace machine shops are experiencing record-setting order volumes and capital investments due to reshoring momentum and robust defense procurement trends [4] - Structural growth in the industry is supported by regulations and incentives such as the CHIPS Act and Inflation Reduction Acts, positioning precision CNC machine shops as a critical segment for reshoring and national security [5] Acquisition Details - On June 24, 2025, PMGC announced a non-binding letter of intent to acquire a profitable, AS9100 and ISO 9001-certified CNC precision machining company in the U.S. [6] - The target company specializes in high-complexity aerospace and defense components, generating approximately USD 4.5 million in revenue and USD 500,000 in adjusted EBITDA in 2024 [7]