GE Aerospace to Acquire Aviation Engine Castings Supplier CPP for $11.75 Billion

en.Wedoany.com Reported - On September 8, GE Aerospace signed an agreement to acquire precision castings manufacturer Consolidated Precision Products (CPP) from Warburg Pincus and Berkshire Partners for $11.75 billion. GE Aerospace plans to fund approximately $7 billion of the consideration in cash, with the remaining amount raised through new debt. The transaction is expected to close in the second half of 2027, subject to regulatory approvals and other customary closing conditions.

CPP primarily manufactures highly engineered blades and structural castings used in aviation engines, while also processing titanium alloys, superalloys, and other metallic materials. Its products cover nearly all current mainstream commercial aircraft programs and serve the defense and power generation industries. GE Aerospace has had a purchasing relationship with CPP for over 15 years, and CPP is also a key castings supplier in GE Aerospace's engine supply chain.

Approximately 70% of CPP's revenue comes from engine component operations, with products used in engine programs such as CFM LEAP and GEnx. GE Aerospace expects CPP to generate revenue of approximately $2 billion by 2027; during the same period, the company anticipates that demand for aviation engine blades will grow by more than 30% by 2030 compared to current levels. Upon completion of the transaction, CPP's existing precision casting capabilities will be integrated into GE Aerospace's manufacturing system.

The transaction valuation is approximately 18 times CPP's projected 2027 EBITDA, a multiple that includes the net synergies GE Aerospace expects to realize; excluding synergies, the corresponding valuation is approximately 26 times. GE Aerospace expects the transaction to be accretive to adjusted earnings per share and free cash flow in the first full year after closing, without altering the company's existing capital allocation plans.

The key assets in this GE Aerospace acquisition are concentrated in the manufacturing of critical engine castings. The company is currently facing growing demand across commercial engines, aftermarket services, and defense engines, with castings consistently serving as a critical supply link in engine capacity expansion. Upon completion of the acquisition, GE Aerospace will combine CPP's manufacturing expertise with its own FLIGHT DECK production system to expand castings capacity and improve the supply of engine components.

This is GE Aerospace's largest acquisition since becoming an independent publicly traded company in 2024. The company has been continuously increasing investment in its own manufacturing system and supplier network, and in 2026 announced approximately $1 billion in investments across its U.S. manufacturing footprint and supply chain to expand engine and component capacity; the CPP transaction further extends its control into the critical castings supply chain.