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GE Aerospace to spend nearly $12 billion to bring key castings supplier in-house
cnbc.com • • business
Key Points:
- GE Aerospace announced it will acquire castings supplier Consolidated Precision Products (CPP) for $11.75 billion to enhance its in-house manufacturing capacity amid strong demand in the aerospace sector.
- The acquisition, GE Aerospace's largest since becoming a standalone company, aims to improve control over critical jet-engine supply chains by integrating CPP's precision casting expertise.
- CPP supplies parts for major commercial and military aircraft programs, with about 70% of its revenue coming from commercial and defense engines, making it a strategic asset for GE Aerospace.
- The deal is expected to close in the second half of 2027 and will be funded through existing cash and new debt, with anticipated benefits including increased adjusted profit per share and free cash flow in the first year.
- GE Aerospace forecasts a more than 30% rise in demand for precision-cast turbine blades and vanes by 2030, and the acquisition is intended to shorten development cycles and boost manufacturing readiness.
