GE Aerospace to Buy Consolidated Precision Products for $11.75 Billion

M&A · PartnershipIndustry Impact 4
โดย Reuters·US·Read original
Summary · why it matters

GE Aerospace agreed to acquire castings maker Consolidated Precision Products for $11.75 billion, its largest acquisition since becoming a standalone company in 2024, in a move to secure supply of the precision metal turbine-blade components that have been a persistent bottleneck across the jet engine industry. CPP is the world's third-largest maker of these parts and supplies about one-quarter of GE's casting needs, and CEO Larry Culp called the capacity "mission-critical" as the company works through a backlog stretching into the next decade. GE's backlog exceeded $210 billion after its second-quarter results, including roughly $170 billion in commercial services and more than $30 billion in defense, and the company expects the deal to generate about $200 million in net synergies and achieve double-digit return on invested capital by the fifth year. GE will fund $7 billion of the acquisition with cash and finance the remainder with new debt, and it expects to complete the acquisition in the second half of 2027, leaving time for antitrust review; CPP supplies GE's rivals alongside GE, which could raise concerns about access to critical casting capacity. GE expects demand for airfoils to increase more than 30% by 2030 from 2026 levels, and it expects CPP to make roughly $2 billion in revenue in 2027.

Impact on stocks 3

Aerospace & Aviation▲ · 2 stocks
GE Aerospace
GE
▲ PositiveCapitalSupplyrelevance

$11.75B acquisition funded with $7B cash and new debt, expected to yield ~$200M net synergies and double-digit ROIC by year five

Artificial Intelligence▲ · 1 stocks

Theme Impact 2

Off-coverage companies 1

Consolidated Precision ProductsPrivate▲ Positive
Capitalrelevance

CPP is being acquired by GE Aerospace for $11.75B, with roughly $2B revenue expected in 2027

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