This morning, we announced that GE Aerospace has signed an agreement to acquire Consolidated Precision Products (CPP), a leading manufacturer of highly engineered castings.
GE Aerospace Chairman and CEO H. Lawrence Culp, Jr., said, “Investing in mission-critical casting capacity is needed to support the strong simultaneous demand across commercial engines, aftermarket and defense. 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.”
CPP is a global manufacturer of highly engineered airfoils and structural castings, titanium superalloy and soft metal. CPP produces castings for nearly every major current generation commercial aircraft program, in addition to serving defense and power customers. GE Aerospace has been a CPP customer for over fifteen years.
Culp added, “We will leverage FLIGHT DECK to drive process and quality improvements, supporting higher output, and integrate design and manufacturing to bring engine technologies to market faster for our customers. These improvements also will ensure manufacturing readiness to deploy enhanced airfoil technology for a more reliable ramp.”
With this transaction, we’re building capacity to support customers across the aerospace and defense industry. We’ll further accelerate today’s investment with incremental planned capital investments over time. And, we plan to invest in CPP's people, creating additional jobs to support the deployment of FLIGHT DECK, our proprietary lean operating model, to increase output. We’re mindful CPP is a part of the solution, but we will continue to need all our partners and suppliers, and remain committed to deepening relationships with them, technically and operationally, in order to increase capacity.
The purchase price of $11.75 billion will be financed with $7 billion in cash, with the remainder in new debt. This values CPP at ~18x 2027 EBITDA including expected net synergies, or a multiple of ~26x without. We expect the acquisition to be accretive to adjusted EPS* and free cash flow* in the first year, excluding one-time costs and deal related amortization. The transaction is expected to close second half 2027 and will be subject to regulatory approvals and other customary closing conditions.
This transaction will deliver strong near and long-term value creation for customers and shareholders.
Thank you for your continued interest in GE Aerospace,
The GE Aerospace Investor Relations team
*Non-GAAP Financial Measure