GE Aerospace to buy CPP for $11.75 billion

Jet engine in an aerospace factory illustrating $11.75 billion acquisition to boost capacity and earnings

Key Points

01GE Aerospace (GE) agrees to acquire Consolidated Precision Products for $11.75 billion
02Deal aims to expand castings capacity for commercial, aftermarket and defense demand
03Purchase financed with $7 billion cash and additional new debt
04Transaction expected to be accretive in year one and close in H2 2027

GE Aerospace strikes $11.75 billion CPP deal

GE Aerospace (GE) announced on September 8, 2026 that it has signed an agreement to acquire Consolidated Precision Products (CPP) for $11.75 billion. The seller group consists of private investment firms Warburg Pincus and Berkshire Partners. The acquisition is positioned as a strategic expansion of mission‑critical castings capacity to support strong, simultaneous demand across commercial engines, the aftermarket, and defense markets.

The company stated that the transaction is expected to be accretive to adjusted earnings per share and free cash flow in the first year after closing. GE Aerospace (GE) also indicated that the deal does not change its existing capital allocation plans, even as it adds a large new asset to its portfolio.

Financing structure and valuation metrics

GE Aerospace plans to finance the $11.75 billion purchase with $7 billion in cash, with the remainder funded through new debt. The transaction values CPP at approximately 18 times projected 2027 EBITDA when expected net synergies are included. Excluding those synergies, the multiple is about 26 times 2027 EBITDA.

The company emphasized that, despite the use of new debt, its overall capital allocation priorities will remain unchanged. Management highlighted expectations that the acquisition will contribute positively to both profitability and cash generation relatively quickly after completion.

Strategic rationale and operational plans

GE Aerospace described investing in casting capacity as necessary to meet robust demand across its engine programs and related services. The company plans to combine its technology capabilities and FLIGHT DECK platform with CPP’s manufacturing expertise to expand capacity, improve performance, and accelerate new engine technologies for current fleets and next‑generation platforms.

CPP has been a GE Aerospace customer for more than fifteen years, providing highly engineered castings and sub‑assemblies primarily for commercial aerospace and defense applications. GE Aerospace said this existing relationship underpins plans to integrate design and manufacturing more tightly by leveraging digital tools and process improvements.

Profile of CPP and transaction timetable

CPP is headquartered in Cleveland, Ohio and was founded in 1991. It is one of the world’s largest producers of investment and precision sand castings, supplying complex super alloy, titanium, aluminum, magnesium and steel components. The company employs a global team of about 6,600 people across more than 20 facilities.

GE Aerospace expects the acquisition to close in the second half of 2027, subject to regulatory approvals and other customary closing conditions. Legal and financial advisors on the transaction include Paul, Weiss, Rifkind, Wharton & Garrison LLP as lead legal counsel to GE Aerospace, Evercore (EVR) and PJT Partners (PJT) as lead financial advisors to GE Aerospace, Morgan Stanley & Co. LLC (MS) and Guggenheim Securities, LLC as additional financial advisors, and Cleary Gottlieb as legal counsel to CPP.

Key Takeaways

01GE Aerospace is making a large, targeted investment to expand mission‑critical castings capacity across commercial, aftermarket and defense engine programs.
02The CPP acquisition is structured with a mix of cash and new debt but is still expected to be accretive to adjusted EPS and free cash flow in the first year.
03A long‑standing supplier relationship and CPP’s global footprint are central to GE Aerospace’s plan to integrate design, digital tools and manufacturing at scale once regulatory approvals are secured.

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