GE Aerospace plans to buy Consolidated Precision Products (CPP) for $11.75 billion, bringing an engine-casting supplier in-house to ease bottlenecks. GE plans to use $7 billion in cash and new debt for the rest; closing is expected in the second half of 2027.
CPP supplies parts for GE's LEAP and GEnx engines and nearly every major current-generation commercial aircraft program; about 70% of its revenue comes from commercial and defense engines. GE plans to increase output through higher factory yields and machine utilization and less scrap and rework. The company says closer integration of airfoil design and manufacturing could shorten development and speed production ramp-ups. CPP is expected to generate roughly $2 billion in revenue in 2027.
The deal values CPP at about 26 times its expected 2027 core profit before anticipated combination benefits, or roughly 18 times including them. CPP also supplies companies beyond GE, including Pratt & Whitney, which competes with GE. Vertical Research analyst Robert Stallard told Reuters the effect on CPP's non-GE customers remains to be seen.
