GE Aerospace said Tuesday it will acquire Consolidated Precision Products for $11.75 billion, funding the purchase with existing cash and new debt. The company called it its biggest transaction since becoming a standalone firm and is targeting a closing in the back half of 2027.
CPP is one of the biggest makers of investment and precision sand castings, providing components for virtually all major current-generation commercial and military aircraft programs. The company's end markets also span rotorcraft, defense armaments, and gas turbines used in industrial applications. Around 70% of CPP's revenue is tied to commercial and defense engines, with most of the balance coming from missiles and power generation equipment. These cast parts are made by pouring molten alloys into highly accurate molds to form complex metal components.
Engine makers have been pushing to boost output and reduce supply chain risk as orders stay strong for new aircraft and aftermarket parts, and a shortage of castings keeps holding production back. Bringing CPP inside gives GE more control over a critical step in the engine supply chain.
CEO Larry Culp said, "Investing in mission-critical casting capacity is needed to support the strong simultaneous demand across commercial engines, aftermarket and defense." He added, "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 for the current fleet and next-generation platforms."
A long term plan helps protect your savings and grow wealth steadily. Join Briefs Finance CEO Jaspreet Singh on September 29th for a FREE live investor workshop, How to Profit From A Dollar That's Losing its Value, where he shows how we're spotting investment opportunities as the dollar falls. Save your spot.
Jefferies analyst Sheila Kahyaoglu described the investment castings market as in "war games mode." That tracks with the industry scouring for capacity, and even with SpaceX CEO Elon Musk recently talking up plans to manufacture turbine blades to meet the company's own power needs.
GE also highlighted a critical bottleneck: demand for airfoils, the precisely cast turbine blades and vanes that withstand extreme temperatures and play a crucial role in engine efficiency and durability, is expected to climb more than 30% by 2030. By integrating CPP, GE says it can tie airfoil design more directly to production, cut development time and be better prepared as it increases output.
Early market reaction was mixed. GE Aerospace slipped slightly in early trading, and shares of smaller rival Howmet Aerospace declined 6%. On valuation, the purchase price equates to about 26 times the core profit CPP is expected to generate in 2027, before any anticipated integration benefits are taken into account. After accounting for those benefits, the transaction implies a valuation of 18 times projected 2027 EBITDA.
Protecting what you have and seeking thoughtful opportunities keeps money working for you. Our CEO Jaspreet Singh is hosting a FREE live investor workshop, How to Profit From A Dollar That's Losing its Value, on September 29th. Sign up free to join him live.
