GE Aerospace Acquires Consolidated Precision Products for $11.75 Billion
GE Aerospace has agreed to acquire Consolidated Precision Products (CPP), a manufacturer of precision castings used in jet engines and aerospace applications, from private equity firms Warburg Pincus and Berkshire Partners for $11.75 billion. The deal will be financed with $7 billion in cash and the remainder through new debt. Expected to close by late 2027 after regulatory approvals, CPP's operations span over 20 facilities across the U.S., employing around 6,600 people. CPP supplies components for commercial aircraft, military systems, helicopters, and industrial gas turbines with an estimated $2 billion in revenue forecasted for 2027. The acquisition is intended to bolster GE Aerospace's capacity amid rising demand for airfoil parts expected to grow over 30% by 2030 across multiple sectors. The deal values CPP at approximately 26 times its projected EBITDA before synergies, which could reduce the valuation to around 18 times after anticipated $200 million in net synergies. GE Aerospace expects the acquisition to add value within a year of closing and cited strong recent performance with revenue growth exceeding expectations.
Tickers: $GE