BY Richard Summerfield
GE Aerospace has agreed to acquire Consolidated Precision Products (CPP) from its private equity owners Warburg Pincus and Berkshire Partners in a transaction worth around $11.7bn.
The agreement values CPP at approximately 18 times projected 2027 earnings before interest, taxes, depreciation and amortisation (EBITDA) when expected net synergies are included, and at approximately 26 times projected 2027 EBITDA excluding synergies. The deal is projected to be accretive to adjusted earnings per share and free cash flow in year one, with around $200m in synergies.
According to a statement announcing the deal, the purchase price of $11.75bn will be financed with $7bn in cash, with the remainder in new debt. The deal is expected to close in the second half of 2027, subject to regulatory approvals and other customary closing conditions.
“Investing in mission-critical casting capacity is needed to support the strong simultaneous demand across commercial engines, aftermarket and defense,” said H. Lawrence Culp, Jr., chairman and chief executive of GE Aerospace. “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.
Mr Culp said the company would use FLIGHT DECK to improve processes and quality, increase production output, and better integrate design and manufacturing, enabling new engine technologies to reach customers more quickly. The initiative is also intended to enhance manufacturing readiness for advanced airfoil technology and support a more reliable production ramp-up.
“GE Aerospace has been a great partner to CPP for many years, and we are excited to further strengthen this long‑standing relationship,” said James Stewart, chief executive of CPP. “As we advance our position as an industry leader in castings, GE Aerospace has expressed strong enthusiasm for supporting our continued growth and expanded vision. Together, we look forward to delivering meaningful value and advancing the success of both organizations.”
“We are incredibly proud of the platform we have built in partnership with Berkshire Partners and CPP’s talented management team,” said Dan Zamlong, managing director of Warburg Pincus. “CPP has been transformed into a leading precision casting company in the industry, with significant investments in its operations, technology, quality systems and talent, while expanding its ability to support customers across the commercial aerospace, defense, and power generation markets.”
“Berkshire Partners is grateful to have partnered with CPP’s management team and Warburg Pincus during a critical chapter of the company’s growth,” said Blake Gottesman, managing director of Berkshire Partners. “Together, we have strengthened CPP’s leadership in the castings industry, and we are excited for the company’s continued success as part of GE Aerospace.”
CPP, headquartered in Cleveland, Ohio, manufactures investment and precision sand castings used in commercial and military aircraft, weapon systems, jets, helicopters, and industrial gas turbines. Its portfolio spans complex super alloy, titanium, aluminium, magnesium and steel cast components.
The company employs approximately 6600 people across more than 20 facilities. Founded in 1991, CPP is described as one of the world’s largest producers of investment and precision sand castings. GE Aerospace has been a customer of CPP for more than 15 years.
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