Key facts
- GE Aerospace is acquiring Consolidated Precision Products for $11.75 billion.
- Consolidated Precision Products is a maker of metallic components for jet engines.
- The acquisition aims to strengthen aerospace supply chains and secure critical casting capacity.
- The deal will be financed with $7 billion in cash and the remainder through debt.
- The transaction is expected to face antitrust scrutiny.
GE Aerospace is set to acquire Consolidated Precision Products (CPP), a maker of metallic components for jet engines, for $11.75 billion. The deal, announced by GE Aerospace CEO Larry Culp, is described as a move to secure mission-critical capacity and strengthen aerospace supply chains, which have faced significant challenges since the COVID-19 pandemic. Castings and forgings have been identified as a major chokepoint in the industry, impacting the delivery of long-term order books. Competitors like Pratt & Whitney and Rolls-Royce are also investing in their own casting capabilities. CPP is one of the top global suppliers in this niche, providing a quarter of GE's needs. GE plans to leverage its LEAN production system to improve efficiency and unlock greater rewards from the acquisition. The deal is expected to face antitrust scrutiny, with potential divestitures of certain facilities.