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MACRONatural gas in focus as Fed, ECB, and Bank of England signal hawkish shiftSep 12DEALSGE Aerospace's $11.75 billion bet on casting capacitySep 12AMSTAmesite shareholder update maps LynkMagic expansion into the $1.5T post-acute care marketSep 12CRYPTOVisa opens VisaNet settlement data to onchain lenders as stablecoin volume crosses $20 billion run rateSep 12$BTCFed hike odds at 83% on Polymarket ahead of September 16, with Bitcoin and XRP already pricing the moveSep 12CRYPTOTom Lee sees "really bullish" 12 months for crypto while BitMine's ether stake sits $5 billion underwaterSep 12DEALSCopart's $1.9 billion bid for ACV Auctions brings digital wholesale channel into focusSep 12$BTCBitcoin nears $80,000 as mixed CPI print fans the Fed rate debateSep 12MACROIraq agrees to joint investigation with Iran into border drone launchersSep 12MACROBRICS flags Strait of Hormuz as Middle East tensions squeeze energy supply chainsSep 12MACRONatural gas in focus as Fed, ECB, and Bank of England signal hawkish shiftSep 12DEALSGE Aerospace's $11.75 billion bet on casting capacitySep 12AMSTAmesite shareholder update maps LynkMagic expansion into the $1.5T post-acute care marketSep 12CRYPTOVisa opens VisaNet settlement data to onchain lenders as stablecoin volume crosses $20 billion run rateSep 12$BTCFed hike odds at 83% on Polymarket ahead of September 16, with Bitcoin and XRP already pricing the moveSep 12CRYPTOTom Lee sees "really bullish" 12 months for crypto while BitMine's ether stake sits $5 billion underwaterSep 12DEALSCopart's $1.9 billion bid for ACV Auctions brings digital wholesale channel into focusSep 12$BTCBitcoin nears $80,000 as mixed CPI print fans the Fed rate debateSep 12MACROIraq agrees to joint investigation with Iran into border drone launchersSep 12MACROBRICS flags Strait of Hormuz as Middle East tensions squeeze energy supply chainsSep 12
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GE Aerospace's $11.75 billion bet on casting capacity

Casting capacity for jet engine airfoils is in focus for GE Aerospace (GE) after the company agreed to acquire Consolidated Precision Products from private equity sellers Warburg Pincus and Berkshire Partners for $11.75 billion, a deal announced Tuesday. The transaction is expected to close in the second half of 2027, pending regulatory approvals.

By Renata OstrowskiNewsroomSeptember 12, 20262 min read
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Key takeaways

  • GE Aerospace agreed to acquire Consolidated Precision Products from Warburg Pincus and Berkshire Partners for $11.75 billion, in a deal announced Tuesday.
  • The acquisition, expected to close in the second half of 2027 pending regulatory approvals, will be funded with $7 billion in cash and the remainder in new debt.
  • CPP, based in Cleveland, Ohio, runs more than 20 facilities with about 6,600 workers and has an estimated 2027 revenue of roughly $2.0 billion, about 60% from commercial aerospace.
  • GE Aerospace projects airfoil component demand will rise more than 30% through 2030 across commercial engines, aftermarket services, and defense programs.
  • The $11.75 billion price equals about 26 times CPP's forecast 2027 EBITDA before cost benefits, falling to around 18 times with those gains included.

Casting capacity for jet engine airfoils is in focus for GE Aerospace (GE) after the company agreed to acquire Consolidated Precision Products from private equity sellers Warburg Pincus and Berkshire Partners for $11.75 billion, a deal announced Tuesday. The transaction is expected to close in the second half of 2027, pending regulatory approvals.

CPP, headquartered in Cleveland, Ohio, runs more than 20 manufacturing facilities with roughly 6,600 workers. It produces investment and precision sand castings from super alloy, titanium, aluminum, magnesium, and steel, with components going into commercial aircraft, military aircraft, helicopters, weapon systems, and industrial gas turbines. GE Aerospace has sourced from CPP for more than 15 years. The deal formalizes that dependency into ownership rather than a vendor contract.

The numbers

GE Aerospace will fund the acquisition with $7 billion in cash and the remainder in new debt. At $11.75 billion, the price equates to approximately 26 times CPP's forecast 2027 EBITDA before cost benefits are included, falling to around 18 times with those gains factored in. The company expects approximately $200 million in net gains from the combination and anticipates the deal will add to adjusted earnings per share and free cash flow within the first full year of ownership, before one-time costs and deal-related amortization. CPP's 2027 estimated revenue is approximately $2.0 billion, with about 60% from commercial aerospace.

The capacity case

The operational rationale is throughput. GE Aerospace projects airfoil component demand will rise more than 30% through 2030 across commercial engines, aftermarket services, and defense programs. CPP castings are already embedded in the LEAP, GEnx, T700, F110, and F404 engine programs. CEO H. Lawrence Culp Jr. said the investment was needed to support simultaneous demand across all three segments, and that combining CPP's manufacturing experience with GE Aerospace's operating system is expected to expand capacity and accelerate new engine technologies.

That backdrop includes real operating momentum. GE Aerospace raised full-year guidance in July after second-quarter revenue and adjusted earnings per share both rose more than 20% year over year. Total engine deliveries were up 31% in the first half of the year, with LEAP deliveries up 41% and record internal shop visit output.

What to watch

The skeptic's concern is entry price. Twenty-six times forecast EBITDA assumes the demand curve holds through 2030, the expected cost benefits arrive on schedule, and new debt remains manageable in whatever rate environment 2027 delivers. At 18 times with those gains reflected, the valuation is more defensible but still depends on execution. GE Aerospace shares showed little movement in premarket trading Tuesday. The next confirmable milestone is regulatory clearance and the formal close, which the company has set for no earlier than the second half of 2027.

Related reading

About this story

Filed by the newsroom of MarketPR on September 12, 2026. Source: finance.yahoo.com. Indicative figures are not investment advice.

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Frequently asked

Why is GE Aerospace buying Consolidated Precision Products?

GE Aerospace wants to expand casting capacity for jet engine airfoils, as it projects airfoil component demand will rise more than 30% through 2030 across commercial, aftermarket, and defense segments. GE has sourced from CPP for more than 15 years, and the deal converts that dependency into ownership.

When is the deal expected to close?

The transaction is expected to close in the second half of 2027, pending regulatory approvals.

What does CPP make and for whom?

CPP produces investment and precision sand castings from super alloy, titanium, aluminum, magnesium, and steel for commercial aircraft, military aircraft, helicopters, weapon systems, and industrial gas turbines. Its castings are embedded in the LEAP, GEnx, T700, F110, and F404 engine programs.

What is the main risk cited with the acquisition?

The chief concern is the entry price of 26 times forecast EBITDA, which assumes the demand curve holds through 2030, expected cost benefits arrive on schedule, and new debt stays manageable in the 2027 rate environment.

How did GE Aerospace's recent business perform before the deal?

GE Aerospace raised full-year guidance in July after second-quarter revenue and adjusted EPS both rose more than 20% year over year, with total engine deliveries up 31% in the first half and LEAP deliveries up 41%.