GE Aerospace has announced its largest acquisition since becoming a standalone company in 2024, agreeing to buy Consolidated Precision Products (CPP) for $11.75 billion to bring a critical part of its engine supply chain in-house and expand production capacity.
📌 Key Transaction Terms & Financial Figures:
$11.75 Billion Deal Value: GE Aerospace will finance the acquisition with $7 billion in existing cash and the remainder through new debt.
$2.0 Billion 2027 Revenue Projection: CPP is expected to generate ~$2.0B in revenue by 2027, with ~70% derived from commercial and defense engines.
26x ➔ 18x Valuation Multiple (EV/EBITDA): Valued at 26x expected 2027 core profit pre-synergies, dropping to 18x after factoring in expected combination benefits.
+30% Airfoil Demand Growth: GE expects its demand for airfoils (turbine blades and vanes) to increase by over 30% by 2030 compared to 2026 levels.
H2 2027 Target Close: The deal is expected to close in the second half of 2027, subject to regulatory approvals.
💡 Strategic Impact & Market Dynamics:
Eliminating Critical Supply Chain Bottlenecks: Direct control over precision castings secures capacity for key programs (LEAP, GEnx) across commercial engines, aftermarket parts, and defense.
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Accelerating Next-Gen Technology: Bringing airfoil design and manufacturing under one roof shortens development cycles and speeds deployment of enhanced cooling technologies to boost engine durability.
Competitive & Customer Ripple Effects: Raises strategic questions for rival aerospace manufacturers that also rely on CPP for critical casting components.