By Global Consultants Review Team ,
GE Aerospace has agreed to acquire Consolidated Precision Products (CPP) from private investment firms Warburg Pincus and Berkshire Partners for $11.75 billion in cash. The transaction will expand GE Aerospace’s manufacturing capacity for highly engineered castings and strengthen its control over a critical part of the aircraft-engine supply chain.
The acquisition comes as demand remains strong across commercial aircraft engines, aftermarket services and defense. GE Aerospace said the deal is expected to be accretive to adjusted earnings per share and free cash flow in its first year, excluding one-time costs and deal-related amortization.
CPP is a major manufacturer of highly engineered castings and sub-assemblies, serving commercial aerospace, defense and other industrial markets. The company produces complex castings using materials including superalloys, titanium, aluminum, magnesium and steel.
CPP has approximately 6,600 employees across more than 20 facilities worldwide and has supplied GE Aerospace for more than 15 years.
For GE Aerospace, the acquisition provides greater access to manufacturing capacity for components that are essential to aircraft engines. The company expects the combination to help increase production, improve manufacturing performance and accelerate development of new engine technologies.
H. Lawrence Culp Jr., Chairman and CEO of GE Aerospace, said the acquisition responds to simultaneous demand across several important markets.
“Investing in mission-critical casting capacity is needed to support the strong simultaneous demand across commercial engines, aftermarket and defense.” — H. Lawrence Culp Jr., Chairman and CEO, GE Aerospace
Culp added that GE Aerospace plans to combine its technology capabilities and FLIGHT DECK operating model with CPP’s manufacturing experience. The company expects this combination to expand capacity, improve performance and accelerate engine technologies for both current fleets and next-generation platforms.
The acquisition also strengthens a relationship that has existed between the two companies for more than 15 years.
James Stewart, CEO of Consolidated Precision Products (CPP), said:
“GE Aerospace has been a great partner to CPP for many years, and we are excited to further strengthen this long-standing relationship.” — James Stewart, CEO, Consolidated Precision Products
The statement reflects CPP’s role as an established supplier to GE Aerospace and highlights the strategic fit between the two companies.
GE Aerospace will pay $11.75 billion for CPP. The company plans to finance approximately $7 billion with cash, while the remaining amount will come from new debt. GE Aerospace said the acquisition will not change its existing capital-allocation plans.
The transaction values CPP at approximately 26 times expected 2027 EBITDA before anticipated net synergies. Including expected synergies, the valuation is approximately 18 times 2027 EBITDA.
GE Aerospace expects the deal to contribute to adjusted earnings per share and free cash flow during the first year following completion.
The acquisition is significant because aircraft-engine manufacturing depends on highly specialized components that require complex production capabilities.
By acquiring CPP, GE Aerospace will have greater control over an important part of this manufacturing process. The company can also use CPP’s expertise and facilities to support higher production volumes as demand increases.
The transaction is therefore more than a conventional capacity expansion. It represents a move toward greater vertical integration, allowing GE Aerospace to bring more critical manufacturing capabilities within its own organization.
The aerospace sector continues to face strong demand for new aircraft and aftermarket services. At the same time, manufacturers are working to increase production and reduce supply-chain constraints.
GE Aerospace reported $16.5 billion in second-quarter 2026 orders, up 17% year over year, while its backlog exceeded $210 billion. The company also reported strong growth in engine deliveries during the first half of the year.
Against this backdrop, securing additional casting capacity could help GE Aerospace support its production plans while addressing supply-chain risks.
GE Aerospace said it will use its FLIGHT DECK operating model to drive process and quality improvements across the combined business.
The company expects these improvements to support higher output and help integrate design and manufacturing more closely. GE Aerospace also believes the approach can accelerate the development and deployment of improved engine technologies.
The transaction is expected to close in the second half of 2027, subject to regulatory approvals and other customary closing conditions.
The GE Aerospace-CPP transaction is one of the major aerospace M&A deals announced in 2026. It brings together a large aerospace manufacturer and a specialized supplier with a substantial global manufacturing footprint.
For GE Aerospace, the deal offers three major strategic benefits :
The transaction also demonstrates how industrial companies are using M&A to address capacity constraints and secure strategically important manufacturing capabilities.
GE Aerospace has appointed Evercore and PJT Partners as its lead financial advisers, with Paul, Weiss, Rifkind, Wharton & Garrison LLP serving as lead legal counsel.
CPP is being advised by Morgan Stanley and Guggenheim Securities, while Cleary Gottlieb is serving as legal counsel.
GE Aerospace’s $11.75 billion acquisition of CPP represents a significant expansion of its manufacturing footprint and supply-chain capabilities.
With CPP’s 6,600-person workforce, more than 20 facilities and specialized casting expertise joining GE Aerospace, the transaction is expected to give the company additional capacity to respond to demand across commercial aviation, aftermarket services and defense.
The deal now moves into the regulatory approval process, with completion expected in the second half of 2027.
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