Acquisition Overview
GE Aerospace announced on Tuesday that it has signed a definitive agreement to acquire Consolidated Precision Products (CPP) from private‑equity owners Warburg Pincus and Berkshire Partners for a total consideration of $11.75 billion. The transaction represents a strategic move to expand GE Aerospace’s casting capacity across its commercial engines, aftermarket, and defense businesses.
Target Company Profile
CPP, headquartered in Cleveland, Ohio, is a leading producer of engineered investment and precision sand castings for the commercial aerospace and defense markets. Its product portfolio includes complex super‑alloy, titanium, aluminum, magnesium, and steel castings used in commercial and military aircraft, weapon systems, jets, helicopters, and industrial gas turbines. Founded in 1991, CPP operates more than 20 facilities and employs approximately 6,600 workers.
Valuation and Financing
The purchase price values CPP at roughly 18 times its projected 2027 EBITDA when expected net synergies are included, or about 26 times EBITDA on a standalone basis. GE Aerospace will fund the acquisition with $7 billion of cash on hand, with the balance financed through the issuance of new debt.
Expected Financial Impact
GE Aerospace indicated that the acquisition is expected to contribute to adjusted earnings per share and free cash flow in the first year after closing. The company emphasized that the deal will not alter its existing capital allocation plan.
Transaction Timeline and Approvals
The closing of the transaction is targeted for the second half of 2027, subject to receipt of all required regulatory approvals and the satisfaction of customary closing conditions.
Advisory and Market Reaction
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. Following the announcement, GE Aerospace’s shares traded roughly flat in pre‑market activity on Tuesday.