GE Aerospace Acquires Consolidated Precision Products for $12 Billion
GE Aerospace has announced the acquisition of Consolidated Precision Products (CPP) in a deal valued at $11.75 billion, marking its largest purchase since becoming an independent company in 2024. CPP is one of only a few global suppliers of aerospace castings and provides about 25% of GE's needs, making the acquisition strategic for addressing supply chain constraints that have hindered production capacity. The deal will be financed with $7 billion in cash and the remaining amount through new debt. GE expects CPP to generate approximately $2 billion in revenue by 2027 and anticipates a boost in adjusted profit per share and free cash flow within the first year post-acquisition, despite potential antitrust scrutiny. GE Aerospace has a backlog of work extending into the 2030s and needs additional capacity to fulfill its obligations. The acquisition is expected to streamline operations and resolve supply chain bottlenecks over time.
Tickers: $GE
Topics: acquisition Consolidated Precision Products GE Aerospace supply chain