GE Aerospace has agreed to acquire Consolidated Precision Products (CPP) from private equity firms Warburg Pincus and Berkshire Partners for $11.75 billion. This acquisition will substantially increase GE Aerospace's production capabilities for critical components, such as highly engineered castings, which are essential for commercial and military aircraft engines, as well as industrial gas turbines.
The deal, which is expected to close in the second half of 2027 pending regulatory approvals, will be financed with $7 billion in cash from GE Aerospace and the remainder through new debt. GE Aerospace CEO H. Lawrence Culp, Jr. emphasized that this investment addresses the strong demand across commercial engines, aftermarket services, and defense, and is anticipated to be accretive to GE's adjusted earnings per share and free cash flow in the first year. The acquisition values CPP at approximately 18x its 2027 pretax earnings, including expected net synergies, or around 26x without them.
CPP, headquartered in Cleveland, Ohio, has been a supplier to GE Aerospace for over 15 years, producing complex superalloy, titanium, aluminum, magnesium, and steel castings. The company employs about 6,600 people across more than 20 facilities globally. This strategic acquisition aims to improve supply stability, accelerate new engine technologies, particularly for airfoils capable of higher temperature performance, and leverage GE Aerospace's FLIGHT DECK technology to enhance manufacturing processes and quality.
