GE Aerospace to Buy Castings Supplier CPP for $11.75 Billion

GE Aerospace said Tuesday it will acquire aerospace castings supplier Consolidated Precision Products (CPP) from investment firms Warburg Pincus and Berkshire Partners for $11.75 billion. The deal will give GE greater control over a critical source of precision castings used in jet engines as the aerospace industry works to expand production and reduce supply-chain risks.

CPP is one of the world’s largest producers of investment and precision sand castings, supplying components for commercial and military aircraft, helicopters, weapon systems and industrial gas turbines. The company employs about 6,600 people across more than 20 facilities worldwide and has supplied GE Aerospace for more than 15 years. GE CEO Larry Culp said the investment would help expand casting capacity and accelerate new engine technologies.

The transaction is expected to close in the second half of 2027 and is projected to increase GE Aerospace’s adjusted profit per share and free cash flow in its first year. GE is paying about 26 times CPP’s expected 2027 core profit, excluding integration benefits, while the deal values CPP at roughly 18 times projected 2027 EBITDA including those benefits. GE shares were largely flat in premarket trading.

Pic Courtesy: google/ images are subject to copyright