Full Breakdown
GE Aerospace Moves to Secure Engine Casting Supply with $12 B CPP Acquisition
9/10/2026, 4:40:21 AM
Core Event
- On September 8 2026 GE Aerospace announced an agreement to acquire Consolidated Precision Products (CPP) for $11.75 billion in cash and new debt. The transaction is slated to close in the second half of 2027, subject to regulatory approval.
Background & Context
- Castings and forgings have been a choke point in aerospace manufacturing, a problem that intensified after the COVID-19 pandemic. CPP, the world’s third-largest maker of metallic components for turbine blades, supplies roughly a quarter of GE’s casting needs and also serves Honeywell, RTX and Lockheed Martin. Competitors Pratt & Whitney and Rolls-Royce are expanding in-house casting capacity, highlighting industry-wide pressure on this step.
Data & Statistics
- Purchase price: $11.75 billion (? 18 × 2027 EBITDA with synergies, ? 26 × without).
- Funding: $7 billion cash; remainder via new debt.
- CPP workforce: ~6,600 employees across >20 facilities.
- Projected FY 2027 CPP revenue: $2 billion.
- GE Aerospace backlog (2026): $210 billion.
- Engine deliveries Q2 2026: up 31 %; LEAP deliveries up 41 %.
Official Statements & Responses
- James Stewart, CEO of CPP: “GE Aerospace has been a great partner to CPP for many years, and we are excited to further strengthen this long-standing relationship.”
- John Plant, CEO of Howmet Aerospace: noted the deal expands GE’s supply base while Howmet remains confident in its own growth.
Conflicting Reports & Gaps
- The purchase price appears as $11.75 billion in filings and as “nearly $12 billion” in some outlets.
- Valuation multiples differ: 18 × EBITDA with synergies versus 26 × without; expected net synergies (~$200 million) are not detailed publicly.
Verbatim Quotes
- “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,” — Larry Culp, GE aerospace CEO
- “GE goes in and buys Consolidated Precision Products. Now, this I think is going to send this stock up, and the reason why is because this is more defense-oriented, and everyone’s crazy to see them building up defense.” — Jim Cramer
Why It Matters
- Internalizing a major casting supplier helps GE Aerospace reduce reliance on a limited pool of external providers, mitigate supply-chain disruptions, and accelerate development of next-generation engine airfoils. The move aligns with a broader industry trend toward vertical integration. Successful integration could enhance GE’s ability to meet its backlog and support defense programs such as the T700 and F404 engines.
What's Next
- The transaction is expected to close in the second half of 2027, pending antitrust clearance and customary conditions. GE Aerospace says the acquisition will be accretive to adjusted earnings per share and free cash flow in the first year after combination.
