GE Aerospace to Acquire Castings Supplier CPP for $11.75 Billion

GE Aerospace announced on Tuesday it will acquire castings manufacturer Consolidated Precision Products (CPP) for $11.75 billion from investment firms Warburg Pincus and Berkshire Partners. The deal is a significant move by the jet engine maker to expand its internal supply-chain capabilities amid strong market demand.

Strategic Rationale

The acquisition is intended to secure a critical part of GE Aerospace's manufacturing process. The company cited the need to ensure it can meet production targets across its key business lines.

"Investing in mission-critical casting capacity is needed to support the strong simultaneous demand across commercial engines, aftermarket and defense," CEO Larry Culp said in a statement. This vertical integration gives GE Aerospace more direct control over the supply of essential components for its engines.

Financial and Transaction Details

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Key details of the acquisition include:

• Purchase Price: $11.75 billion
• Sellers: Private equity firms Warburg Pincus and Berkshire Partners
• Expected Closing: The transaction is anticipated to close in the second half of 2027.

GE Aerospace expects the deal to be accretive to its adjusted profit per share and free cash flow in the first full year after the transaction is finalized. The move signals confidence in sustained growth for the aerospace and defense sectors.