GE Aerospace to Buy Castings Maker CPP for Nearly $12 Billion
The acquisition is expected to boost adjusted profit per share and free cash flow in the first year, GE Aerospace said.
- On Tuesday, GE Aerospace announced it will acquire castings supplier Consolidated Precision Products for $11.75 billion to bolster in-house manufacturing capabilities.
- CEO Larry Culp stated that "investing in mission-critical casting capacity is needed to support the strong simultaneous demand across commercial engines, aftermarket and defense." Combining CPP's manufacturing experience with GE Aerospace's technology accelerates next-generation platforms.
- Cleveland, Ohio-based CPP employs about 6,600 people across more than 20 facilities and has supplied GE Aerospace for over fifteen years. The $11.75 billion deal is financed with $7 billion in cash and new debt.
- Investment firms Warburg Pincus and Berkshire Partners are selling the manufacturer, with the deal expected to close in the second half of 2027 subject to regulatory approval. CPP CEO James Stewart said the acquisition will "further strengthen this longstanding relationship."
- Valued at 18 times projected 2027 EBITDA including synergies, the deal reflects industry pressure as engine makers race to increase output and ease supply-chain constraints amid sustained demand for new aircraft.
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GE Aerospace Buys Manufacturer of Manufactured Parts Consolidated Precision Products for US$ 11,7 Bi
GE Aerospace has concluded an agreement to purchase the manufacturer of Consolidated Precision Products engineering parts, owned by Warburg Pincus and Berkshire Partners, for $11.75 billion. Exclusive material for subscribers. To have full access, access the material link and register.
GE to buy Consolidated Precision Products for US$11.75 billion
GE Aerospace agreed to buy castings manufacturer Consolidated Precision Products from Warburg Pincus and Berkshire Partners for US$11.75 billion, a deal that will significantly expand its production footprint for the critical components. Read more at The Business Times.
CPP employs around 6600 people at more than 20 locations worldwide and has been supplying GE Aerospace for over 15 years. The company is now acquired for $11.75 billion.
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