GE Aerospace announced Tuesday that it has signed an agreement to acquire Consolidated Precision Products (CPP) from private equity owners Warburg Pincus and Berkshire Partners for $11.75 billion.
CPP, headquartered in Cleveland, Ohio, is an engineered-castings and sub-assemblies manufacturer serving both commercial aerospace and defense customers. The company produces investment and precision sand castings, including complex super alloy, titanium, aluminum, magnesium and steel castings used in commercial and military aircraft, weapon systems, jets, helicopters and industrial gas turbines. CPP employs approximately 6,600 people across more than 20 facilities.
In a statement accompanying the deal announcement, GE Aerospace Chairman and CEO H. Lawrence Culp, Jr. framed the acquisition as a response to demand for additional casting capacity across commercial engines, aftermarket services and defense work. Culp said GE Aerospace's technology, when combined with CPP's manufacturing capabilities, should expand capacity and help accelerate development of engine technologies.
GE Aerospace has purchased castings from CPP for more than fifteen years, and CPP—founded in 1991—remains one of the world's largest producers of investment and precision sand castings, according to the companies' release.
The transaction values CPP at roughly 18 times 2027 EBITDA when expected net synergies are included, and about 26 times 2027 EBITDA without those synergies. To fund the acquisition, GE Aerospace will use $7 billion in cash and finance the remainder with newly issued debt.
GE Aerospace said the purchase is expected to be accretive to adjusted earnings per share and to free cash flow in the first year following closing. The company also stated the transaction will not alter its capital allocation plans.
Advisory roles on the deal are led by Evercore and PJT Partners as financial advisors to GE Aerospace, while Morgan Stanley and Guggenheim Securities advised CPP.
The companies said the transaction is anticipated to close in the second half of 2027, subject to regulatory approvals and other customary closing conditions. In pre-market trading on Tuesday after the announcement, the company's shares were trading roughly flat.
Context and implications
The purchase is positioned as a strategic vertical integration move to increase internal casting capacity used across GE Aerospace's commercial engine programs, aftermarket activities and defense contracts. The valuation metrics quoted for 2027 EBITDA reflect a substantial premium when expected synergies are excluded versus included, and GE's funding mix relies on a significant cash outlay combined with incremental debt issuance.