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3h ago

GE Aerospace to Buy Casting Supplier CPP for $11.75 Billion

Securing hard‑to‑scale precision casting capacity should relieve a key bottleneck in engine and turbine production pending regulatory approval.

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Pictured is a U.S. Air Force photo of Air Force Maj. Kevin Ueunten, T-7A test director, as he gets into the cockpit of a T-7A Red Hawk at Edwards AFB, Calif. on June 25 for a flight that "marked the first joint test sortie with both developmental and operational test aircrew," the Air Force said.
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Overview

  • GE announced on Tuesday, September 8, 2026, that it agreed to buy Consolidated Precision Products from Warburg Pincus and Berkshire Partners for $11.75 billion.
  • The company will fund the purchase with $7 billion in cash and the remainder in new debt and values CPP at roughly 26 times forecast 2027 EBITDA before synergies and about 18 times after expected cost savings.
  • CPP is a Cleveland‑based precision castings maker with about 6,600 employees across more than 20 facilities and estimated 2027 revenue near $2.0 billion, with roughly 60% of sales in commercial aerospace.
  • GE projects about $200 million in net synergies, says the deal will be accretive to adjusted EPS and free cash flow in the first full year, and expects closing in the second half of 2027 subject to regulatory clearances.
  • The acquisition reflects a wider industry shift toward owning upstream metallurgical capacity to ease long‑lead supplier constraints that have limited engine output and could speed deliveries for commercial and defense programs.