GE Aerospace to acquire castings supplier Consolidated Precision Products for $11.75 billion

GE Aerospace said it will buy Consolidated Precision Products (CPP), a leading maker of precision sand castings, for about $11.75 billion, its largest acquisition since becoming a standalone company in 2024. The deal is intended to secure casting capacity for the company’s commercial, aftermarket and defense engine programs, which face a backlog extending into the next decade.

"Investing in mission-critical casting capacity is needed to support the strong simultaneous demand across commercial engines, aftermarket and defense," GE Aerospace CEO Larry Culp said.

CPP supplies parts for GE’s LEAP and GEnx engines and generates roughly 70% of its revenue from commercial and defense engines. GE expects CPP to produce about $2 billion in revenue by 2027 and plans to raise output by improving factory yields, machine utilization and reducing scrap.

"You want to be in control of that critical part of your supply chain," Kelly, a GE spokesperson, told CNBC.

Analysts note that the acquisition aligns with continued tightness in the engine-casting market, though it may raise questions about CPP’s service to non-GE customers. GE also aims to accelerate the introduction of its enhanced airfoil technology, which lowers metal temperatures in engines to improve durability and efficiency, by integrating design and manufacturing.

The transaction values CPP at roughly 26 times its projected 2027 core profit before synergies, or about 18 times after expected benefits. GE will fund $7 billion with cash and the remainder with new debt, with closing slated for the second half of 2027.