GE Aerospace to Acquire Consolidated Precision Products for $11.75 Billion
GE Aerospace has agreed to acquire Consolidated Precision Products (CPP) from private equity firms Warburg Pincus and Berkshire Partners in a deal valued at $11.75 billion. CPP, based in Cleveland, Ohio, is one of the world's largest producers of investment and precision sand castings for aerospace and defense applications. The acquisition aims to enhance GE Aerospace’s casting capacity amid growing demand across commercial engines, aftermarket services, and defense sectors. GE plans to finance $7 billion through cash reserves and raise the remaining amount via new debt. The deal is valued at approximately 18 times projected 2027 EBITDA including synergies or 26 times without them. GE expects the acquisition to contribute positively to adjusted earnings per share and free cash flow in its first year post-closure, with no disruption to existing capital allocation plans. The transaction is subject to regulatory approvals and other customary conditions, with a projected closing date of late 2027. Evercore and PJT Partners are advising GE Aerospace on the deal while Morgan Stanley and Guggenheim Securities advise CPP.
Topics: Aerospace Corporate Finance Manufacturing