GE Aerospace to buy CPP for $11.75 billion

GE Aerospace agreed to acquire Consolidated Precision Products (CPP) for $11.75 billion. The transaction marks the company's largest acquisition since becoming an independent standalone business in 2024. CPP is a major manufacturer of precision sand castings, supplying parts for GE's LEAP and GEnx commercial engines alongside nearly every major current-generation commercial aircraft program.

Commercial and defense engines account for roughly 70% of CPP's revenue, and the supplier is projected to generate about $2 billion in revenue in 2027. GE expects its demand for airfoils, which include turbine blades and vanes, to increase by more than 30% by 2030 compared with 2026 levels. CEO Larry Culp stated that investing in casting capacity is necessary to support simultaneous demand across commercial engines, aftermarket services, and defense programs.

The $11.75 billion purchase price values CPP at roughly 26 times its projected 2027 core profit before synergies, or about 18 times when factoring in expected operational benefits. GE plans to fund the transaction using $7 billion in cash and finance the remainder through new debt. The deal is scheduled to close in the second half of 2027.

CPP also manufactures components for competitors such as RTX's Pratt & Whitney. Vertical Research analyst Robert Stallard told Reuters that the deal is strategically sensible given tight casting supply, though its effect on CPP's third-party customers remains to be seen. Following the announcement, GE Aerospace shares were little changed, while shares of casting competitor Howmet Aerospace fell approximately 8%.