GE Aerospace is buying aerospace-castings supplier Consolidated Precision Products for $11.75 billion, its largest deal since becoming a standalone company in 2024. The purchase brings a key parts supplier in-house but adds debt and will draw antitrust scrutiny.
GE Aerospace announced this week that it is acquiring Consolidated Precision Products (CPP) for $11.75 billion, marking its largest acquisition since the company became a stand-alone entity in 2024. The deal will be financed with $7 billion in cash, with the remainder funded through new debt.
Closing a supply chain gap
CPP has supplied GE for many years and is one of just a handful of companies that are global suppliers of aerospace castings, supplying approximately 25% of GE's needs. Supply chain constraints have made it difficult for companies like GE to keep pace with demand, so bringing CPP fully under its umbrella loosens a known bottleneck in its own manufacturing while making the supply chain harder for competitors to replicate.
GE expects CPP to generate approximately $2 billion in revenue in 2027. The acquisition will, however, face antitrust scrutiny and concerns over fair competition. Still, according to GE, the deal should boost adjusted profit per share and free cash flow even in the first year if it goes through.
Backlog stretches into the 2030s
GE Aerospace's backlog is more than $200 billion and stretches into the next decade, and the company must secure enough capacity to meet those contracted obligations. Purchasing CPP streamlines operations and addresses that supply chain issue directly.
The stock has fallen more than 11% in the past month. Even so, GE Aerospace's stock has risen just 5% in 2026. It is still trading at a premium, with forward and trailing P/E ratios approaching 40 and a PEG ratio above 4.
Source: The Motley Fool
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