GE Aerospace has agreed to acquire Consolidated Precision Products (CPP) for $11.75 billion, expanding its capacity to manufacture mission-critical castings used across commercial aviation, aftermarket and defense programs.
The company is acquiring CPP from Warburg Pincus and Berkshire Partners. GE Aerospace plans to finance the transaction with $7 billion of cash and the remainder through new debt.
The acquisition is expected to be accretive to GE Aerospace’s adjusted earnings per share and free cash flow in the first year following completion, excluding one-time costs and deal-related amortization.
GE Aerospace said the transaction does not change its existing capital allocation plans.
The deal values CPP at approximately 18 times projected 2027 EBITDA including expected net synergies, compared with approximately 26 times EBITDA without those synergies.
CPP is one of the world’s largest manufacturers of investment and precision sand castings used in aerospace, defense and power generation applications.
Headquartered in Cleveland, Ohio, the company produces complex castings made from superalloys, titanium, aluminum, magnesium and steel for commercial and military aircraft, weapon systems, regional and business jets, helicopters and industrial gas turbines.
Founded in 1991, CPP employs approximately 6,600 people across more than 20 facilities worldwide.
GE Aerospace has been a CPP customer for more than 15 years.
GE Aerospace plans to combine its technology capabilities and FLIGHT DECK operating model with CPP’s manufacturing expertise to expand casting capacity, improve production performance and accelerate development of technologies for existing and next-generation aircraft engines.
The company also expects closer integration between component design and manufacturing to improve the speed at which new engine technologies can be moved into production.
GE Aerospace said the investment will help address strong simultaneous demand across its commercial engine, aftermarket and defense businesses.
The company has an installed base of approximately 50,000 commercial aircraft engines and 30,000 military aircraft engines, giving it significant exposure to the long-term maintenance and replacement demand associated with the global aviation fleet.
The transaction also represents an exit for Warburg Pincus and Berkshire Partners following significant investment in CPP’s manufacturing operations, technology, quality systems and workforce.
Warburg Pincus manages more than $105 billion in assets and has invested in more than 1,100 companies across private equity, real estate and capital solutions strategies.
Berkshire Partners is currently investing from its $7.8 billion Fund XI and has completed more than 140 private equity investments since inception.
The GE Aerospace-CPP transaction is expected to close in the second half of 2027, subject to regulatory approvals and customary closing conditions.
Evercore and PJT Partners are serving as lead financial advisors to GE Aerospace, while Paul, Weiss, Rifkind, Wharton & Garrison is serving as lead legal counsel.
Morgan Stanley and Guggenheim Securities are serving as financial advisors to CPP, with Cleary Gottlieb acting as legal counsel.
KEY QUOTES:
“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.”
“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.”
H. Lawrence Culp, Jr., Chairman and CEO of GE Aerospace
“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.”
James Stewart, CEO of CPP
“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.”
Dan Zamlong, Managing Director at Warburg Pincus
“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.”
Blake Gottesman, Managing Director at Berkshire Partners
