GE Aerospace to Acquire Precision Castings Supplier Consolidated Precision Products for $11.75 Billion
Why It MattersThe acquisition tightens GE Aerospace's grip on a critical jet-engine casting bottleneck as airfoil demand is expected to climb, reshaping competitive dynamics against rivals like Howmet Aerospace.
GE Aerospace said on Tuesday it will acquire Consolidated Precision Products (CPP), a major producer of investment and precision sand castings, from investment firms Warburg Pincus and Berkshire Partners for $11.75 billion. The deal, the largest since GE Aerospace became a standalone company, brings a critical jet-engine supply chain supplier in-house and is expected to close in the second half of 2027, boosting adjusted earnings per share and free cash flow in its first full year.
CPP supplies components for nearly every major current-generation commercial and military aircraft program, as well as helicopters, weapon systems and industrial gas turbines, with about 70% of its revenue coming from commercial and defense engines. GE Aerospace CEO Larry Culp said the acquisition would expand capacity, improve performance and accelerate new engine technologies, with demand for airfoils expected to rise more than 30% by 2030.
GE Aerospace will fund the purchase with existing cash and new debt, paying 26 times CPP's expected 2027 core profit excluding anticipated integration benefits, or 18 times projected 2027 EBITDA including those benefits. GE Aerospace shares were marginally lower in morning trading following the announcement, while shares in rival Howmet Aerospace fell 6%.
