GE Aerospace Agrees $11.75 Billion Acquisition of Consolidated Precision Products

GE Aerospace (NYSE:GE) said on Tuesday that it has agreed to acquire Consolidated Precision Products from private investment firms Warburg Pincus and Berkshire Partners for $11.75 billion.

Consolidated Precision Products, or CPP, manufactures engineered castings and sub-assemblies for commercial aerospace and defence customers. The Cleveland, Ohio-based company employs approximately 6,600 people across more than 20 facilities.

The transaction is expected to close in the second half of 2027, subject to regulatory approvals and other customary closing conditions.

GE Aerospace to Finance Deal With Cash and Debt

GE Aerospace plans to fund $7 billion of the acquisition price with cash and finance the remainder through new debt.

The transaction values CPP at approximately 18 times projected 2027 EBITDA including expected net synergies, or approximately 26 times EBITDA excluding those synergies.

GE Aerospace expects the acquisition to contribute to adjusted earnings per share and free cash flow during the first year following completion. The company said the transaction will not alter its existing capital allocation plans.

These expectations, including anticipated synergies and financial contributions, are forward-looking and depend on the transaction closing and subsequent operating performance.

Acquisition Targets Additional Casting Capacity

CPP produces investment and precision sand castings using materials including super alloys, titanium, aluminium, magnesium and steel.

Its products are used in commercial and military aircraft, weapon systems, jets, helicopters and industrial gas turbines. Founded in 1991, CPP is described in the supplied information as one of the world’s largest producers of investment and precision sand castings.

GE Aerospace has been a customer of CPP for more than 15 years.

Chairman and Chief Executive H. Lawrence Culp, Jr. said the acquisition is intended to address casting capacity requirements associated with demand across commercial engines, aftermarket services and defence.

He also said combining GE Aerospace’s technology with CPP’s manufacturing capabilities is expected to increase capacity and accelerate the development of engine technologies.

Deal Subject to Regulatory Approval

Evercore and PJT Partners are acting as lead financial advisers to GE Aerospace on the transaction. Morgan Stanley and Guggenheim Securities are advising CPP.

Completion remains dependent on regulatory approvals and customary closing requirements, with GE Aerospace targeting the second half of 2027.

GE Aerospace shares were approximately unchanged in Tuesday’s premarket trading following the announcement.

GE Aerospace stock price