Overview
- GE signed a binding agreement on Sept. 8 to buy Consolidated Precision Products for $11.75 billion, funding the deal with $7 billion in cash and the remainder in new debt.
- CPP is a Cleveland‑based maker of complex investment and sand castings with about 6,600 employees across more than 20 facilities that has supplied GE for over 15 years and provides roughly a quarter of GE’s blades and vanes.
- GE values the deal at about 26 times CPP’s forecast 2027 EBITDA before synergies and roughly 18 times including an expected $200 million of net synergies, and projects the transaction will be accretive to adjusted EPS and free cash flow in the first full year.
- Analysts say the acquisition will face antitrust scrutiny and could require facility divestitures or carve‑outs, a factor that could complicate integration and delay capacity gains.
- The purchase reflects a wider industry push to fix long lead times for precision castings that have constrained engine output and aftermarket work and it will be important to watch whether GE expands CPP’s capacity while keeping it available to third‑party customers.