GE Aerospace to acquire castings supplier CPP for $11.75
GE Aerospace will purchase its castings supplier Consolidated Precision Products for $11.75 billion in a deal announced on September 8, 2026.
GE Aerospace has agreed to buy one of its key engine component suppliers, Consolidated Precision Products (CPP), for $11.75 billion. The company announced the signed agreement on September 8, 2026.
It is purchasing CPP from the private investment firms Warburg Pincus and Berkshire Partners. GE Aerospace expects the transaction to close in the second half of 2027, pending regulatory approvals. The purchase will be funded with $7 billion in cash and the remainder through new debt, with no change to the company's capital allocation plans.
CPP supplies critical engine castings
Founded in 1991 and based in Cleveland, Ohio, CPP specializes in producing investment and precision sand castings. It uses materials like superalloy, titanium, aluminum, magnesium, and steel for commercial and military aircraft, weapon systems, helicopters, missiles, and industrial gas turbines. The company employs roughly 6,600 people across more than 20 facilities and has been a GE Aerospace supplier for over 15 years.
An investor presentation filed by GE Aerospace notes that CPP supplies castings for several key engine programs. The company projected that its own airfoil demand, measured in parts, would grow by more than 30% between 2026 and 2030 across commercial engines, aftermarket, and defense.
| Engine Program | Type |
|---|---|
| LEAP | Commercial |
| GEnx | Commercial |
| T700 | Military/Helicopter |
| F110 | Military |
| F404 | Military |
Casting and forging capacity has been a persistent bottleneck in the industry's production ramp-up. As part of a broader $1 billion US investment announced on March 9, 2026, GE Aerospace committed over $100 million to its external supplier base. Separately, its joint venture partner Safran is spending $175 million on a major forging press that will not be operational until 2029.
Financial rationale and expected synergies
GE Aerospace values CPP at approximately 18 times its projected 2027 EBITDA, including expected net synergies of about $200 million. Without those synergies, the multiple would be roughly 26 times. Based on the purchase price, these multiples imply CPP's 2027 earnings before interest, taxes, depreciation, and amortization will be around $450 million before synergies. The investor presentation attributes approximately $2 billion of 2027 revenue to CPP.
The company stated it expects the acquisition to be accretive to adjusted earnings per share and free cash flow in the first year, excluding one-time costs and deal-related amortization. It also projects the deal will deliver a double-digit return on invested capital by the fifth year.
Warburg Pincus has owned CPP since 2011. Berkshire Partners became an investor through a recapitalization announced on June 14, 2019, the terms of which were not publicly disclosed.
A trend toward vertical integration
The move follows a similar strategic acquisition in Europe. On June 25, 2026, Airbus and Safran agreed to buy Tikehau Capital out of the metals producer Aubert and Duval, taking full control of a critical supplier.
Both deals signal a broader shift toward vertical integration in aerospace manufacturing. This is particularly evident in metallurgical processes, where adding new capacity takes years and stringent qualification requirements make suppliers difficult to replace. GE Aerospace's acquisition directly addresses a component category that has constrained engine output across the industry.
