Key Takeaways
- • GE Aerospace acquires Consolidated Precision Products (CPP) from Warburg Pincus and Berkshire Partners for $11.75 billion enterprise value, converting a 15-year supplier relationship into owned manufacturing capacity amid supply chain constraints in aerospace casting.
- • CPP operates 20+ facilities across six countries employing 6,600 people, specializing in mission-critical metal castings including jet engine airfoils, airframe components, and structural engine cases for commercial, military, and defense applications.
- • The acquisition addresses a critical bottleneck in engine production: casting capacity expansion is the binding constraint in aerospace supply chains, with new foundry lines requiring years to qualify against customer and regulatory standards.
- • GE Aerospace will finance the deal with $7 billion cash and debt, valuing CPP at 18x expected 2027 EBITDA including anticipated net cost savings, positioning the company to capture growth in a global casting market forecast to expand from $18 billion (2024) to $29 billion (2033) at 5.4% CAGR.
- • The transaction reflects a consolidation trend in aerospace casting, an industry concentrated among Howmet Aerospace and Berkshire Hathaway's Precision Castparts, with aerospace and defense representing over 45% of total casting market demand.
Summary
GE Aerospace has agreed to acquire Consolidated Precision Products (CPP), a leading precision metal casting manufacturer, from private equity sponsors Warburg Pincus and Berkshire Partners at an enterprise value of $11.75 billion. The transaction marks a strategic vertical integration for GE Aerospace, converting a long-standing customer-supplier relationship spanning more than 15 years into direct manufacturing control. The acquisition addresses a critical supply chain vulnerability: casting capacity constraints have emerged as the primary bottleneck limiting jet engine production at a time of robust commercial and defense demand.
CPP manufactures complex metal components essential to aerospace propulsion and structures, including high-temperature jet engine airfoils, airframe structural castings, engine cases, and components for military systems, business and regional jets, and industrial gas turbines. The company produces these components through precision casting processes using superalloys, titanium, aluminum, magnesium, and steel, with particular expertise in ceramic core and wax tooling technology. Airfoils represent the company's most demanding product category—operating at temperatures approaching material melting points while cooled through internal air passages formed by ceramic cores that are extracted post-casting. CPP currently operates more than 20 facilities across the United States, Belgium, Poland, Slovakia, and Mexico, employing approximately 6,600 people.
GE Aerospace will fund the acquisition with $7 billion in cash and debt financing. The valuation implies 18x expected 2027 EBITDA including anticipated cost synergies, or 26x without them. This acquisition aligns with broader industry dynamics: the global investment casting market was valued at $18 billion in 2024 and is projected to reach $29 billion by 2033 (5.4% compound annual growth rate), with aerospace and defense accounting for more than 45% of demand. However, capacity expansion rather than order backlogs constrains industry growth—new foundry production lines require years to meet customer specifications and regulatory certification standards.
CPP has transitioned through three private equity owners since its 1991 founding. Arlington Capital Partners acquired the business in 2008, followed by Warburg Pincus' purchase in September 2011. Berkshire Partners joined through a recapitalization in June 2019, with Warburg remaining as a financial partner. Under dual private equity ownership, CPP expanded from 11 facilities to more than 20 globally while strengthening technology capabilities, quality systems, and market position across commercial aerospace, defense, and power generation sectors. Evercore and PJT Partners advised GE Aerospace, while Morgan Stanley and Guggenheim Securities represented CPP. The transaction is expected to close in the second half of 2027.
CPP manufactures complex metal components essential to aerospace propulsion and structures, including high-temperature jet engine airfoils, airframe structural castings, engine cases, and components for military systems, business and regional jets, and industrial gas turbines. The company produces these components through precision casting processes using superalloys, titanium, aluminum, magnesium, and steel, with particular expertise in ceramic core and wax tooling technology. Airfoils represent the company's most demanding product category—operating at temperatures approaching material melting points while cooled through internal air passages formed by ceramic cores that are extracted post-casting. CPP currently operates more than 20 facilities across the United States, Belgium, Poland, Slovakia, and Mexico, employing approximately 6,600 people.
GE Aerospace will fund the acquisition with $7 billion in cash and debt financing. The valuation implies 18x expected 2027 EBITDA including anticipated cost synergies, or 26x without them. This acquisition aligns with broader industry dynamics: the global investment casting market was valued at $18 billion in 2024 and is projected to reach $29 billion by 2033 (5.4% compound annual growth rate), with aerospace and defense accounting for more than 45% of demand. However, capacity expansion rather than order backlogs constrains industry growth—new foundry production lines require years to meet customer specifications and regulatory certification standards.
CPP has transitioned through three private equity owners since its 1991 founding. Arlington Capital Partners acquired the business in 2008, followed by Warburg Pincus' purchase in September 2011. Berkshire Partners joined through a recapitalization in June 2019, with Warburg remaining as a financial partner. Under dual private equity ownership, CPP expanded from 11 facilities to more than 20 globally while strengthening technology capabilities, quality systems, and market position across commercial aerospace, defense, and power generation sectors. Evercore and PJT Partners advised GE Aerospace, while Morgan Stanley and Guggenheim Securities represented CPP. The transaction is expected to close in the second half of 2027.
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