GE Aerospace to buy engine castings supplier CPP for $11.75 billion

GE Aerospace has agreed to acquire Consolidated Precision Products (CPP), one of its own castings suppliers, for $11.75 billion, taking direct ownership of a component category that has constrained engine output across the industry. 

The company announced the signed agreement on September 8, 2026. It is purchasing CPP from private investment firms Warburg Pincus and Berkshire Partners and expects the transaction to close in the second half of 2027, subject to regulatory approvals and other customary closing conditions. GE Aerospace said that it will fund the purchase with $7 billion in cash and the remainder in new debt, with no change to its capital allocation plans. 

CPP supplies castings for LEAP, GEnx and military engines 

Founded in 1991, Cleveland, Ohio-based CPP specializes in producing investment and precision sand castings in 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 GE Aerospace has been a customer for over 15 years. 

In an investor presentation filed with the Securities and Exchange Commission (SEC), GE Aerospace noted that CPP supplies castings for the LEAP, GEnx, T700, F110 and F404 engines, and projected that its own airfoil demand, measured in number of parts, would grow by more than 30% between 2026 and 2030 across commercial engines, aftermarket and defense. 

Casting and forging capacity has been among the harder constraints to relieve during the current production ramp. GE Aerospace committed more than $100 million to its external supplier base as part of a $1 billion US investment announced on March 9, 2026, while joint venture partner Safran is spending $175 million on a 30,000 metric ton forging press that will not be operational until 2029. 

GE Aerospace expects $200 million in synergies 

GE Aerospace valued CPP at approximately 18 times 2027 EBITDA, including expected net synergies of about $200 million, or approximately 26 times without them. Applied to the purchase price, those multiples imply CPP earnings before interest, taxes, depreciation and amortization of roughly $450 million in 2027 before synergies, against the approximately $2 billion of 2027 revenue that the presentation attributes to the company. 

The company remarked that 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, and to deliver a double-digit return on invested capital by year five. 

Warburg Pincus has owned CPP since 2011. Berkshire Partners came in through a recapitalization announced on June 14, 2019, the terms of which were not disclosed, so there is no public benchmark for what the business was worth before this deal. 

Engine makers move upstream to secure critical suppliers 

The purchase follows a comparable move in Europe, where Airbus and Safran agreed on June 25, 2026, to buy Tikehau Capital out of Aubert and Duval, leaving the two groups in full control of a French metals and superalloys producer neither could easily replace. 

Both deals point to a broader shift toward vertical integration in aerospace manufacturing, particularly metallurgical processes where capacity takes years to add, and qualification requirements make suppliers difficult to replace.  The post GE Aerospace to buy engine castings supplier CPP for $11.75 billion appeared first on AeroTime.

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