Key Moments
- GE Aerospace agreed to acquire Consolidated Precision Products for $11.75 billion from Warburg Pincus and Berkshire Partners.
- The deal values CPP at about 18 times expected 2027 EBITDA including synergies, and about 26 times without synergies.
- The transaction is expected to close in the second half of 2027 and to be accretive to adjusted EPS and free cash flow in the first year.
Strategic Move to Expand Casting Capacity
Investing.com — GE Aerospace announced Tuesday that it has entered into a definitive agreement to acquire Consolidated Precision Products (CPP) from private equity owners Warburg Pincus and Berkshire Partners in a transaction valued at $11.75 billion.
CPP is a supplier of engineered castings and sub-assemblies that serve both commercial aerospace and defense end markets. GE Aerospace Chairman and CEO H. Lawrence Culp, Jr. said the planned acquisition is intended to address the need for additional casting capacity to support demand across commercial engines, aftermarket activity, and defense programs. He indicated that pairing GE Aerospace’s technology with CPP’s manufacturing base is expected to increase capacity and accelerate the development of engine technologies.
CPP’s Manufacturing Footprint and Capabilities
CPP, headquartered in Cleveland, Ohio, manufactures investment and precision sand castings used in commercial and military aircraft, weapon systems, jets, helicopters, and industrial gas turbines. Its portfolio spans complex super alloy, titanium, aluminum, magnesium, and steel cast components.
The company employs approximately 6,600 people across more than 20 facilities. Founded in 1991, CPP is described as one of the world’s largest producers of investment and precision sand castings. GE Aerospace has been a customer of CPP for more than fifteen years.
Deal Valuation and Financing Structure
The agreement values CPP at approximately 18 times projected 2027 EBITDA when expected net synergies are included, and at approximately 26 times 2027 EBITDA excluding synergies.
| Metric | Detail |
|---|---|
| Total transaction value | $11.75 billion |
| Valuation multiple (with synergies) | Approximately 18x 2027 EBITDA |
| Valuation multiple (without synergies) | Approximately 26x 2027 EBITDA |
| Cash financing | $7 billion |
| Remaining consideration | Funded with new debt |
GE Aerospace plans to fund $7 billion of the purchase price with cash, with the balance to be financed through new debt issuance. The company stated that the acquisition is expected to be accretive to adjusted earnings per share and free cash flow in the first year after closing. GE Aerospace also said that its capital allocation plans will remain unchanged as a result of the transaction.
Closing Timeline and Advisory Teams
The companies expect the transaction to close in the second half of 2027, subject to regulatory approvals and other customary closing conditions.
Evercore and PJT Partners are acting as lead financial advisors to GE Aerospace. Morgan Stanley and Guggenheim Securities are advising CPP on the deal.
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