GE Aerospace Buys Castings Supplier CPP for $11.75 Billion

GE Aerospace (NYSE: GE), the jet engine maker, agreed earlier today to buy castings supplier Consolidated Precision Products (CPP) for $11.75 billion, a deal aimed at fixing the parts shortages that have constrained its engine production.

GE shares traded at $337.12, up 1.09% from Friday’s close of $333.48, after opening at $332.24 and touching a high of $337.21. The gain came on the day the deal was announced.

GE Aerospace has been unable to keep pace with strong simultaneous demand across commercial engines, aftermarket servicing and defence orders, largely because it could not source enough castings and forgings, the metal components at the heart of engine parts. Rather than keep relying on an outside supplier, GE is buying one it already knows well: CPP, based in Cleveland, Ohio, has supplied GE Aerospace for more than 15 years and employs roughly 6,600 people across more than 20 facilities.

The purchase is being funded with $7 billion in cash and the rest in new debt, and values CPP at about 18 times its expected 2027 earnings before interest, tax, depreciation and amortisation once synergies are included, or around 26 times without them. GE said the deal should add to adjusted earnings per share and free cash flow within the first year, with no change to its existing capital allocation plans. The transaction is expected to close in the second half of 2027, pending regulatory approval.

H. Lawrence Culp, Jr., GE Aerospace’s chairman and chief executive, said: “Investing in mission-critical casting capacity is needed to support the strong simultaneous demand across commercial engines, aftermarket and defense.”

The muted but positive share reaction suggests the market views the acquisition as a sensible move to secure a bottleneck input rather than a transformative growth deal. CPP is being sold by private equity owners Warburg Pincus and Berkshire Partners, both of which are exiting their stakes as part of the agreement.