GE Aerospace to Acquire Consolidated Precision Products (CPP), Expanding Mission-Critical Castings Capacity
GE Aerospace moves to secure long-term castings supply with an $11.75 billion acquisition of CPP, expected to boost EPS and cash flow.
Rhea-AI Summary
GE Aerospace (GE) agreed to acquire Consolidated Precision Products (CPP), expanding its mission-critical aerospace castings capacity.
The deal values CPP at $11.75 billion, to be funded with $7 billion in cash and the balance in new debt. CPP, owned by Warburg Pincus and Berkshire Partners, is a large producer of investment and precision sand castings for commercial aerospace, defense and power markets, with a workforce of about 6,600 employees across more than 20 facilities. The price implies a valuation of about 18x projected 2027 EBITDA including expected net synergies, or roughly 26x without synergies. GE Aerospace expects the acquisition to be accretive to adjusted EPS and free cash flow in the first year, while maintaining its existing capital allocation plans. Closing is targeted for the second half of 2027, subject to regulatory approvals and customary conditions.
Positive
- Purchase price $11.75 billion for CPP, expanding castings capacity
- Deal funded with $7 billion cash plus additional new debt
- Valuation of CPP at ~18x 2027 EBITDA including expected synergies
- Acquisition expected to be accretive to adjusted EPS in year one
- Acquisition expected to be accretive to free cash flow in year one
- No change to GE Aerospace’s stated capital allocation plans
Negative
- CPP valued at a high ~26x 2027 EBITDA before expected synergies
- Portion of the $11.75 billion purchase price will be funded with new debt
- Transaction closing not expected until second half of 2027, pending approvals
Key Figures
- Purchase Price
- $11.75 billion
- CPP acquisition
- Cash Financing
- $7 billion
- Purchase price financing
- EBITDA Multiple
- ~18x
- 2027 EBITDA including expected net synergies
- EBITDA Multiple Without Synergies
- ~26x
- 2027 EBITDA excluding expected net synergies
- Accretion Timing
- First year
- Expected accretion to adjusted EPS and free cash flow
- Expected Closing
- Second half of 2027
- Subject to regulatory approvals and customary closing conditions
Historical Context
-
GE announced supplier-capacity investments alongside GEnx customer selection and manufacturing expansion.
-
GE reported approximately 1,800 engine commitments and multiple aerospace program developments.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
adjusted eps financial
free cash flow financial
ebitda financial
investment and precision sand castings technical
non-gaap financial measure financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
CINCINNATI, Sept. 08, 2026 (GLOBE NEWSWIRE) --
- Investing in castings capacity to support strong demand across commercial engines, aftermarket and defense
$11.75 billion transaction, expected to be accretive-a) to adjusted EPS* and free cash flow* in the first year- Strong near and long-term value creation for customers and shareholders
GE Aerospace (NYSE:GE) announced today that it has signed an agreement to acquire Consolidated Precision Products (CPP), a leading manufacturer of highly engineered castings, from private investment firms Warburg Pincus and Berkshire Partners.
GE Aerospace Chairman and CEO H. Lawrence Culp, Jr., said, “Investing in mission-critical casting capacity is needed to support the strong simultaneous demand across commercial engines, aftermarket and defense. 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.”
CPP, headquartered in Cleveland, Ohio, manufactures highly engineered castings and sub-assemblies primarily for the commercial aerospace and defense markets. Founded in 1991, CPP is one of the world's largest producers of investment and precision sand castings, producing complex super alloy, titanium, aluminum, magnesium and steel castings for a variety of leading commercial and military aircraft, weapon systems, commercial and regional/business jets, helicopters and industrial gas turbines. CPP has a global team of ~6,600 employees across more than 20 facilities. GE Aerospace has been a CPP customer for over fifteen years.
Culp added, “We will leverage FLIGHT DECK to drive process and quality improvements, supporting higher output, and integrate design and manufacturing to bring engine technologies to market faster for our customers. These improvements also will ensure manufacturing readiness to deploy enhanced airfoil technology for a more reliable ramp.”
CPP CEO James Stewart, said, “GE Aerospace has been a great partner to CPP for many years, and we are excited to further strengthen this long‑standing relationship. As we advance our position as an industry leader in castings, GE Aerospace has expressed strong enthusiasm for supporting our continued growth and expanded vision. Together, we look forward to delivering meaningful value and advancing the success of both organizations.”
Warburg Pincus Managing Director Dan Zamlong, said, “We are incredibly proud of the platform we have built in partnership with Berkshire Partners and CPP’s talented management team. CPP has been transformed into a leading precision casting company in the industry, with significant investments in its operations, technology, quality systems and talent, while expanding its ability to support customers across the commercial aerospace, defense, and power generation markets.”
Berkshire Partners Managing Director Blake Gottesman said, “Berkshire Partners is grateful to have partnered with CPP’s management team and Warburg Pincus during a critical chapter of the company’s growth. Together, we have strengthened CPP’s leadership in the castings industry, and we are excited for the company’s continued success as part of GE Aerospace.”
Transaction Details
This transaction will deliver strong near and long-term value creation for customers and shareholders:
- Purchase price of
$11.75 billion to be financed with$7 billion in cash, with the remainder in new debt - Values CPP at ~18x 2027 EBITDA including expected net synergies, multiple of ~26x without
- The acquisition is expected to be accretive-a) to adjusted EPS* and free cash flow* in the first year
- No change to GE Aerospace’s capital allocation plans
GE Aerospace and CPP are committed to a disciplined, well-planned integration. The transaction is expected to close in the second half of 2027 and will be subject to regulatory approvals and other customary closing conditions.
Advisors
Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as lead legal counsel to GE Aerospace. Evercore and PJT Partners are the lead financial advisors to GE Aerospace on the transaction. Morgan Stanley & Co. LLC and Guggenheim Securities, LLC are serving as financial advisors and Cleary Gottlieb is serving as legal counsel to CPP on the transaction.
About GE Aerospace
GE Aerospace is a global aerospace propulsion, services, and systems leader with an installed base of approximately 50,000 commercial and 30,000 military aircraft engines. With a global team of approximately 57,000 employees building on more than a century of innovation and learning, GE Aerospace is committed to inventing the future of flight, lifting people up, and bringing them home safely. Learn more about how GE Aerospace and its partners are defining flight for today, tomorrow and the future at www.geaerospace.com.
About Warburg Pincus
Warburg Pincus LLC is the pioneer of private equity global growth investing. A private partnership since 1966, the firm has the flexibility and experience to focus on helping investors and management teams achieve enduring success across market cycles. Today, the firm has more than
The firm is headquartered in New York with more than 15 offices globally. For more information, please visit www.warburgpincus.com or follow us on LinkedIn and YouTube.
About Berkshire Partners
Berkshire Partners is a
Caution concerning forward-looking statements - This document contains "forward-looking statements" – that is, statements related to future events that by their nature address matters that are, to different degrees, uncertain. Uncertainties related to this transaction, including expected timing and structure, the ability of the parties to satisfy regulatory and other closing conditions and the expected benefits of the transaction, or other matters as described in our SEC filings may cause our actual future results to be materially different than those expressed in our forward-looking statements; see www.geaerospace.com/investor-relations/important-forward-looking-statement-information as well as our annual reports on Form 10-K and quarterly reports on Form 10-Q for additional details. We do not undertake to update our forward-looking statements. This document also includes certain forward-looking projected financial information that is based on current estimates and forecasts. Actual results could differ materially.
*Non-GAAP Financial Measure
(a- excluding one-time costs and deal related amortization
Megan Newhouse GE Aerospace 203-414-1257 megan.newhouse@geaerospace.com
FAQ
What business does Consolidated Precision Products (CPP) operate in?
CPP manufactures highly engineered investment and precision sand castings and sub-assemblies, using super alloy, titanium, aluminum, magnesium and steel. Its products serve commercial and military aircraft, weapon systems, commercial and regional/business jets, helicopters and industrial gas turbines, primarily in the commercial aerospace and defense markets.
How large is CPP in terms of workforce and facilities?
CPP has a global team of approximately 6,600 employees operating across more than 20 facilities, according to the company’s description in the announcement.
Who are the current owners of CPP and who advised on the transaction?
CPP is being acquired from private investment firms Warburg Pincus and Berkshire Partners. On the GE Aerospace side, Paul, Weiss, Rifkind, Wharton & Garrison is lead legal counsel, with Evercore and PJT Partners as lead financial advisors. CPP is advised by Morgan Stanley & Co. and Guggenheim Securities as financial advisors, and Cleary Gottlieb as legal counsel.
When is the GE Aerospace–CPP acquisition expected to close and what conditions apply?
The transaction is expected to close in the second half of 2027. Completion is subject to regulatory approvals and other customary closing conditions, and the companies state they are planning a disciplined, well-structured integration.
How does GE Aerospace describe the strategic rationale for buying CPP?
GE Aerospace’s CEO states that investing in mission-critical casting capacity is needed to support strong simultaneous demand across commercial engines, aftermarket and defense. The company expects that combining its technology capabilities and FLIGHT DECK system with CPP’s manufacturing experience will expand capacity, improve performance, and accelerate new engine technologies for current fleets and next-generation platforms.