GE Aerospace to Acquire CPP for $11.75 Billion
GE Aerospace announced plans to acquire Consolidated Precision Products (CPP), a leading manufacturer of precision castings, from Warburg Pincus and Berkshire Partners in a deal valued at approximately $11.75 billion. The acquisition aims to strengthen GE's control over critical manufacturing processes for jet engines amid strong demand across commercial aviation, defense, and aftermarket services. The transaction is expected to close by the second half of 2027 and is projected to enhance adjusted profit per share and free cash flow in its first year. CPP supplies components for a wide range of aerospace applications and operates over 20 facilities globally with around 6,600 employees. The deal values CPP at 26 times expected 2027 core profits or 18 times projected EBITDA when including integration benefits. CEO Larry Culp emphasized the strategic importance of expanding in-house manufacturing capabilities to address supply chain constraints and support next-generation engine development.
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Topics: Aerospace Corporate Strategy Manufacturing