GE Aerospace (NYSE:GE) said Tuesday it agreed to acquire Consolidated Precision Products, or CPP, for $11.75 billion. The deal will expand GE’s casting capacity as demand grows across commercial aviation, aftermarket services and defense.
GE Aerospace will buy CPP from private investment firms Warburg Pincus and Berkshire Partners.
Expanding Aerospace Manufacturing Capacity
CPP makes highly engineered castings and subassemblies for commercial aerospace and defense customers. The Cleveland-based company employs about 6,600 people across more than 20 facilities.
GE Aerospace has been a CPP customer for more than 15 years.
CEO H. Lawrence Culp Jr. said additional casting capacity is needed to meet strong demand across GE’s businesses. The company plans to combine its technology and FLIGHT DECK operating model with CPP’s manufacturing capabilities.
GE expects the combination to increase output, improve quality and speed the development of engine technologies for current and next-generation aircraft.
$11.75 Billion Deal
GE Aerospace will finance the acquisition with $7 billion in cash and the remainder through new debt. The company reported $9.35 billion in cash and cash equivalents for the fiscal quarter ending June 30, 2026.
The purchase price values CPP at about 18 times projected 2027 EBITDA, including expected net synergies. Without those synergies, the multiple is about 26 times.
GE expects the transaction to boost adjusted earnings per share and free cash flow in the first year. The company said the acquisition will not change its existing capital allocation plans.
The transaction is expected to close in the second half of 2027, subject to regulatory approvals and customary closing conditions.
GE Aerospace Price Action
GE Price Action: GE Aerospace shares were up 0.19% at $337.77 at the time of publication on Tuesday, according to Benzinga Pro data.
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