PMGC Holdings continues its strategic roll-up in the U.S. precision manufacturing sector, acquiring A&B Aerospace to capitalize on surging aerospace and defense demand.
PMGC Holdings Inc. (Nasdaq: ELAB) acquired A&B Aerospace Inc. for $4.5 million in cash, a move that deepens its reach into the U.S. aerospace and defense supply chain as the sector sees a multi-year production ramp-up.
"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 defense supply chain demand," PMGC Holdings said in a statement.
The deal is PMGC's fifth acquisition in the last year, advancing its roll-up strategy. A&B Aerospace, a 76-year-old company, brings in approximately $5 million in annual revenue and key certifications like AS9100D, along with established relationships with Tier 1 customers including Boeing, Honeywell, and Moog. The acquisition was funded with cash, with $4.275 million paid at closing.
The acquisition positions PMGC to capitalize on strong aerospace and defense tailwinds, including a projected doubling of the global commercial fleet by 2044 and an $839 billion U.S. defense budget for fiscal 2026. With prime contractors prioritizing supply chain security, certified U.S.-based shops like A&B are in high demand, creating durable, hard-to-displace revenue streams for consolidators like PMGC.
The acquisition of A&B Aerospace is the fifth in a series of deals by PMGC over the past 12 months, highlighting an aggressive strategy to consolidate a fragmented U.S. precision manufacturing market. The company is building a platform of AS9100D-certified businesses, a key certification for serving the aerospace and defense industries. For the trailing twelve months ended February 28, 2026, A&B Aerospace generated approximately $5.0 million in revenue and $610,000 in management-adjusted EBITDA, according to unaudited figures provided by the company.
The purchase price of $4.5 million was on a cash-free, debt-free basis. The structure includes a $225,000 indemnification holdback, with the final price subject to customary post-closing adjustments. A&B’s long-tenured president, Jack Badeau, will remain with the company, ensuring leadership continuity.
PMGC's strategy is timed to coincide with powerful secular trends. The commercial aerospace market is in a multi-year upswing, with Boeing's 2025 Commercial Market Outlook forecasting demand for nearly 43,600 new aircraft through 2044. This sustained backlog growth at major airframers is driving demand down the entire supply chain.
Simultaneously, the defense sector is benefiting from increased U.S. government spending and a strategic push to onshore critical manufacturing. Congress enacted an $839 billion discretionary budget for the Department of Defense for fiscal year 2026. Initiatives to secure domestic supply chains make certified U.S. manufacturers like A&B Aerospace, with its 76-year history and high-tolerance machining capabilities, particularly attractive. The high costs and rigorous processes associated with qualifying new suppliers also create sticky customer relationships, a key factor in PMGC's acquisition thesis.
This article is for informational purposes only and does not constitute investment advice.
