GE Aerospace Acquires Consolidated Precision Products for $12 Billion
GE Aerospace has agreed to acquire longtime supplier Consolidated Precision Products (CPP) in a nearly $12 billion deal, marking its largest acquisition since the breakup of General Electric. The move aims to address bottlenecks in cast metal parts production—a critical component in aircraft engine manufacturing—amid surging post-pandemic demand and supply chain challenges. The acquisition is expected to bolster GE Aerospace’s capacity as it faces a $210 billion backlog, with commercial engine orders up 50% year-to-date. CPP generates around $2 billion annually, serving clients like Honeywell, RTX, and Lockheed Martin in addition to GE. The deal values the company at about 26 times its projected fiscal 2027 earnings. GE Aerospace CEO Larry Culp emphasized that expanding casting capacity is essential for meeting demand across commercial engines, defense, and aftermarkets. The transaction aligns with broader industry trends as companies like SpaceX also explore in-house casting solutions.
Topics: Aerospace Industrial manufacturing Vertical integration