NEW YORK (Reuters): GE Aerospace said on Tuesday it would acquire aerospace castings supplier Consolidated Precision Products (CPP) for $11.75 billion, seeking to bring a key part of its engine supply chain in-house and expand production capacity.
The acquisition is GE Aerospace’s largest since the company became an independent business in 2024. The deal comes as aerospace manufacturers face supply-chain constraints that have limited their ability to keep pace with strong demand for new engines, spare parts and repairs.
GE Aerospace CEO Larry Culp said investment in casting capacity was needed to support demand across commercial engines, aftermarket services and defense.
Why is GE Aerospace buying CPP?
CPP is one of the world’s largest producers of precision sand castings, complex metal components made by pouring molten material into molds. It supplies GE’s LEAP and GEnx commercial engines and produces parts for nearly every major current-generation commercial aircraft programme.
About 70% of CPP’s revenue comes from commercial and defense engines. GE expects CPP to generate about $2 billion in revenue in 2027.
GE said its demand for airfoils, including turbine blades and vanes, is expected to rise by more than 30% by 2030 from 2026 levels.
The company plans to increase CPP’s output by improving factory yields and machine utilisation while reducing scrap and rework.
How will the deal affect GE’s engine production?
GE has a large engine backlog extending into the next decade and is seeking additional capacity to meet existing orders.
The company also expects the acquisition to accelerate the introduction of new engine technologies by bringing airfoil design and manufacturing closer together.
GE said enhanced airfoil technology could reduce metal temperatures inside engines, improving durability and efficiency. The technology can be used on LEAP engines and future engine programmes.
GE will finance $7 billion of the acquisition with cash and fund the remainder through new debt. The transaction is expected to close in the second half of 2027.
The deal values CPP at about 26 times its expected 2027 core profit before expected synergies, falling to about 18 times after those benefits are included.
The acquisition could also affect other aerospace companies that rely on CPP. RTX, whose Pratt & Whitney unit buys engine components from CPP, and Howmet Aerospace, a major competitor in aerospace castings, declined to comment.
GE Aerospace shares were little changed in afternoon trading, while Howmet shares fell about 8%.