GE Aerospace Announces $11.75 Billion Acquisition of Consolidated Precision Products
GE Aerospace has announced the acquisition of Consolidated Precision Products (CPP) for $11.75 billion, marking its largest deal since becoming a standalone company in 2024. CPP is one of only a few global suppliers of aerospace castings and provides approximately 25% of GE's needs. The move aims to strengthen supply chain control by eliminating bottlenecks and reducing reliance on external suppliers. The acquisition will be financed with $7 billion in cash and the remainder through new debt, which may impact short-term financial metrics but is expected to boost adjusted profit per share and free cash flow within a year if approved. The deal faces antitrust scrutiny due to concerns over fair competition. GE expects CPP to generate around $2 billion in revenue by 2027. GE Aerospace has a significant backlog of work extending into the 2030s, making this acquisition critical for securing capacity and meeting obligations. While the stock is currently trading at a premium with high P/E ratios, analysts believe the long-term benefits will outweigh short-term costs.
Tickers: $GE
Topics: Aerospace Corporate Strategy Supply Chain