GE Aerospace agreed to acquire Consolidated Precision Products, a manufacturer of precision castings for jet engines and other aerospace applications, from private equity firms Warburg Pincus and Berkshire Partners for $11.75 billion, the company said Tuesday. GE Aerospace will finance the purchase with $7 billion in cash and the remainder in new debt. The transaction is expected to close in the second half of 2027, pending regulatory approvals and other customary closing conditions, the company said.
CPP, headquartered in Cleveland, Ohio, produces investment and precision sand castings made from super alloy, titanium, aluminum, magnesium, and steel. Its components go into commercial aircraft, military aircraft, helicopters, weapon systems, and industrial gas turbines. With a workforce of approximately 6,600 and a footprint spanning more than 20 facilities, CPP has maintained a supplier relationship with GE Aerospace for over 15 years, the company said.
CPP's 2027 estimated revenue is approximately $2.0 billion, with about 60% coming from commercial aerospace. GE Aerospace Chairman and CEO H. Lawrence Culp, Jr. said in a statement, "Investing in mission-critical casting capacity is needed to support the strong simultaneous demand across commercial engines, aftermarket and defense.
By combining GE Aerospace's technology capabilities and FLIGHT DECK with CPP's manufacturing experience, we expect to expand capacity, improve performance and accelerate new engine technologies for the current fleet and next-generation platforms." On a valuation basis, the acquisition price equates to approximately 26 times CPP's forecast 2027 EBITDA before synergies are factored in, falling to around 18 times once those benefits are included. GE Aerospace said it anticipates roughly $200 million in net synergies and expects the deal to add to adjusted earnings per share and free cash flow within the first full year, before one-time costs and deal-related amortization are taken into account. GE Aerospace said the acquisition is intended to address growing demand for airfoil components, which it projects will rise more than 30% through 2030 across commercial engines, aftermarket services, and defense programs.
Key CPP programs include castings for GE Aerospace's LEAP, GEnx, T700, F110, and F404 engines. GE Aerospace raised its full-year guidance in July after second-quarter revenue and adjusted earnings per share both rose more than 20% from a year earlier. The company cited record internal shop visit output and total engine deliveries up 31% in the first half of the year, including LEAP deliveries up 41%.
GE Aerospace shares showed little movement in premarket trading Tuesday.
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