GE Aerospace to Buy Castings Maker CPP for $11.75 Billion

GE Aerospace is moving to vertically integrate its manufacturing supply chain by acquiring castings supplier Consolidated Precision Products for $11.75 billion, seeking to address severe production bottlenecks across the aerospace industry. The transaction, announced on September 8, 2026, targets a critical chokepoint in the production of commercial and military aircraft engines.

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

Under the terms of the agreement, GE Aerospace will purchase Consolidated Precision Products from private equity firms Warburg Pincus and Berkshire Partners. To fund the $11.75 billion purchase price, GE Aerospace plans to utilize $7 billion in cash on hand, with the remaining balance to be financed through new debt issuances.

The deal is slated to close in the second half of 2027, pending customary regulatory approvals and closing conditions.

Why Castings Control Engine Output

Turbine airfoils and structural castings represent some of the most technologically complex and capacity-constrained components in modern aviation. Engine manufacturers across the globe have faced recurring delivery delays and supply chain friction as demand for new aircraft and aftermarket maintenance surges simultaneously.

"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," said Larry Culp, CEO, GE Aerospace.

By bringing CPP's manufacturing footprint directly in-house, GE Aerospace aims to secure predictable access to these high-temperature alloy components. Industry analysts note that direct ownership of tier-one casting suppliers allows prime engine makers to prioritize output, streamline metallurgical research, and reduce reliance on third-party merchant suppliers during industry upcycles.

Long-Standing Industry Ties

CPP operates as a major supplier of highly engineered structural components and airfoils for both commercial aerospace and defense applications. The buyout formalizes a multi-decade operational relationship between the two entities.

"GE Aerospace has been a great partner to CPP for many years, and we are excited to further strengthen this long-standing relationship," said James Stewart, CEO of CPP, in the announcement.

What the Integration Means for the Aerospace Sector

The transaction highlights a broader industrial shift toward vertical integration among major aerospace primes. With airline fleets expanding and defense budgets remaining elevated, engine makers are increasingly deploying balance-sheet capital to lock down physical manufacturing assets, mitigating the systemic vulnerabilities exposed by past supply chain shocks.