GE Aerospace to acquire Consolidated Precision in $11.75b deal

GE Aerospace revealed on Tuesday that it has signed a definitive agreement to acquire Consolidated Precision Products from private investment firms Warburg Pincus and Berkshire Partners for a total enterprise value of $11.75 billion.

Consolidated Precision Products specializes in engineered castings and sub-assemblies for the commercial aerospace and defense sectors. Headquartered in Cleveland, Ohio, the company manufactures investment and precision sand castings, including intricate superalloy, titanium, aluminum, magnesium, and steel castings used in commercial and military aircraft, weapon systems, jets, helicopters, and industrial gas turbines. CPP employs roughly 6,600 workers across more than 20 facilities.

GE Aerospace Chairman and CEO H. Lawrence Culp, Jr. said the acquisition directly addresses the need for additional casting capacity to satisfy demand across commercial engines, aftermarket services, and defense programs. He noted that pairing GE Aerospace’s technology with CPP’s manufacturing expertise is expected to expand capacity and accelerate the development of next-generation engine technologies.

GE Aerospace has been a customer of CPP for more than fifteen years. Founded in 1991, CPP is recognized as one of the largest global producers of investment and precision sand castings.

The deal values CPP at approximately 18 times projected 2027 EBITDA when anticipated net synergies are included, or roughly 26 times 2027 EBITDA excluding those synergies. GE Aerospace plans to fund the purchase with $7 billion in cash and the remaining consideration through new debt.

GE Aerospace expects the acquisition to contribute positively to adjusted earnings per share and free cash flow in its first full year. The company emphasized that the transaction will not alter its existing capital allocation strategy.

The transaction is anticipated to close during the second half of 2027, subject to regulatory approvals and other customary closing conditions.

Evercore and PJT Partners are serving as lead financial advisors to GE Aerospace, while Morgan Stanley and Guggenheim Securities are advising CPP on the transaction.

GE Aerospace’s shares traded approximately flat in pre-market activity on Tuesday following the announcement.