GE Aerospace has agreed to acquire Consolidated Precision Products (CPP), a supplier of precision castings, for approximately $12 billion.
This acquisition marks GE Aerospace's largest transaction since becoming an independent public company. CPP is a key supplier to GE, and the acquisition aims to strengthen GE's control over its engine supply chain and boost production to meet its backlog of over $210 billion in orders. GE expects CPP to generate approximately $2 billion in revenue by 2027, but the deal's valuation, at roughly 26 times CPP's anticipated 2027 EBITDA, means its financial attractiveness hinges on generating sufficient free cash flow through improved production efficiency.
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