GE Aerospace Acquires Consolidated Precision Products in $11.75B Deal
GE Aerospace has agreed to acquire casting specialist Consolidated Precision Products for approximately $11.75 billion, aiming to secure a stable supply of critical engine components and reduce reliance on external suppliers. The deal is expected to enhance GE's control over high-temperature investment castings—key parts in jet engines—which have been a major bottleneck during the aviation industry’s post-pandemic recovery. The acquisition has raised concerns for Howmet Aerospace, another casting specialist whose shares dropped about 10% due to fears of reduced merchant demand. However, analysts suggest that ongoing global capacity shortages through 2030 may benefit both companies rather than create a zero-sum competition. GE plans to finance the deal with $7 billion in cash and new debt, while maintaining its dividend and capital allocation strategy. The transaction is expected to boost adjusted earnings per share for GE Aerospace within the first year of closing. Consolidated Precision Products operates over 20 facilities across North America and Europe, which will be integrated using GE’s Flight Deck lean manufacturing model.
