GE Aerospace to Buy Consolidated Precision in $11.75B Deal

GE Aerospace has agreed to acquire Consolidated Precision Products from private equity firms Warburg Pincus and Berkshire Partners for $11.75 billion, targeting critical supply chain bottlenecks to support rising engine production demands.

"We're excited for at least three reasons: One being just the opportunity to invest in a mission-critical commodity, casting, in terms of the capacity that's required to support the strong demand across commercial new-make, the aftermarket and defense into the 2030s," GE Aerospace CEO Larry Culp told Aviation Week.

Financing and Closing Timeline

GE Aerospace plans to fund the transaction using $7 billion in cash on hand alongside a new debt issuance to cover the remaining balance, according to Aviation Week. The acquisition is slated to close in the second half of 2027, pending customary closing conditions and regulatory approvals.

The deal values Cleveland, Ohio-based CPP at approximately 18 times projected 2027 pretax earnings when factoring in expected net synergies. Without accounting for those synergies, the valuation multiple rises to roughly 26 times earnings.

Industrial Logic and Supply Chain Integration

The transaction targets specialized casting and airfoil manufacturing capacity, which has faced severe constraints as commercial airlines and defense programs ramp up output. By bringing CPP under its corporate umbrella, GE Aerospace aims to secure the supply of components essential for both new engine fabrication and long-term aftermarket maintenance.

"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, Chief Executive Officer, Consolidated Precision Products, in the announcement.

What Is at Stake for Engine Production

Supply chain bottlenecks in aerospace casting and forging have repeatedly constrained jetliner deliveries across the aviation sector. By acquiring a major supplier with deep ties to its manufacturing ecosystem, GE Aerospace is positioning itself to mitigate component shortages that threaten delivery schedules for next-generation commercial powerplants well into the next decade.