September 8, 2026.
GE Aerospace announced on Tuesday that it has signed an agreement to acquire Consolidated Precision Products from private equity firms Warburg Pincus and Berkshire Partners for $11.75 billion. CPP manufactures engineered casting components and sub-assemblies for the commercial aerospace and defense markets. Headquartered in Cleveland, Ohio, the company produces precision investment and sand castings, including super-complex alloys, titanium, aluminum, magnesium, and steel castings for commercial and military aircraft, weapon systems, jets, helicopters, and industrial gas turbines. CPP employs approximately 6,600 workers across more than 20 facilities. GE Aerospace Chairman and CEO H. Lawrence Culp, Jr. noted that the acquisition responds to the need for casting capacity to meet demand in the commercial engine, aftermarket, and defense sectors. He indicated that combining GE Aerospace's technology with CPP's manufacturing expertise should expand capacity and accelerate the development of engine technologies.
GE Aerospace has been a client of CPP for over fifteen years. Founded in 1991, CPP is one of the world's largest producers of precision investment and sand castings. The transaction values CPP at approximately 18 times 2027 EBITDA, including expected net synergies, or about 26 times without synergies. GE Aerospace will finance the purchase with $7 billion in cash and the remainder with new debt. The acquisition is expected to be accretive to adjusted earnings per share and free cash flow in the first year. GE Aerospace stated that the transaction will not alter its capital allocation plans. The deal is expected to close in the second half of 2027, subject to regulatory approvals and other customary closing conditions. Evercore and PJT Partners are acting as lead financial advisors to GE Aerospace, while Morgan Stanley and Guggenheim Securities are advising CPP on the transaction. Company shares traded virtually unchanged before the open on Tuesday following the announcement.
Author: Vlad Schepkov
