GE Aerospace to buy castings maker CPP for $11.75B
What's the deal? GE AerospaceDealroom has a profile for this one. Try Dealroom → has agreed to acquire Consolidated Precision Products (CPP)Dealroom has a profile for this one. Try Dealroom → for $11.75 billion from private investment firms Warburg Pincus and Berkshire PartnersDealroom has a profile for this one. Try Dealroom →. CPP, based in Cleveland, Ohio, is one of the world's largest producers of investment and precision sand castings, with roughly 6,600 employees across more than 20 facilities.
Why now? GE Aerospace ties the move to demand rising at the same time across commercial engines, aftermarket, and defense. Investing in casting capacity, it says, is needed to keep up.
What's the endgame? GE Aerospace makes aircraft engines and systems, with an installed base of roughly 50,000 commercial and 30,000 military engines. It plans to fold CPP into its manufacturing operations to expand capacity and speed new engine technology to market.
CPP, founded in 1991, produces complex super alloy, titanium, aluminium, magnesium, and steel castings for commercial and military aircraft, weapon systems, helicopters, and industrial gas turbines. GE Aerospace has been a CPP customer for over 15 years.
What do they say? "By combining GE Aerospace's technology capabilities and FLIGHT DECK with CPP's manufacturing experience, we expect to expand capacity, improve performance and accelerate new engine technologies," said chairman and chief executive officer H. Lawrence Culp, Jr.
The terms: The deal is expected to be accretive to adjusted earnings per share and free cash flow in its first year. It should close in the second half of 2027, subject to regulatory approvals and customary conditions.
The signal: By bringing a key supplier in-house, GE Aerospace is betting on vertical integration to secure the mission-critical parts its engine ramp depends on — a hedge against the supply constraints that have dogged aerospace manufacturing.
Read more: Business Insider
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