GE Aerospace to buy Consolidated Precision Products for $11.75 billion

GE Aerospace has announced that it has signed an agreement to acquire Consolidated Precision Products (CPP), a manufacturer of highly engineered castings, from private investment firms Warburg Pincus and Berkshire Partners for USD 11.75 billion, to be financed with USD 7 billion in cash, with the remainder in new debt, according to a media release.

“Investing in mission-critical casting capacity is needed to support the strong simultaneous demand across commercial engines, aftermarket and defense,” GE Aerospace Chairman and CEO H. Lawrence Culp, Jr., said. “By combining GE Aerospace’s technology capabilities and FLIGHT DECK with CPP’s manufacturing experience, we expect to expand capacity, improve performance and accelerate new engine technologies for the current fleet and next-generation platforms.” 

Headquartered in Cleveland, Ohio, CPP produces complex super alloy, titanium, aluminum, magnesium and steel castings for a variety of leading commercial and military aircraft, weapon systems, commercial and regional/business jets, helicopters and industrial gas turbines. 

CPP has a global team of about 6,600 employees across more than 20 facilities. GE Aerospace has been a CPP customer for over fifteen years, the media release said.

“GE Aerospace has been a great partner to CPP for many years, and we are excited to further strengthen this long‑standing relationship,” CPP CEO James Stewart said. “As we advance our position as an industry leader in castings, GE Aerospace has expressed strong enthusiasm for supporting our continued growth and expanded vision. Together, we look forward to delivering meaningful value and advancing the success of both organizations.”

“We are incredibly proud of the platform we have built in partnership with Berkshire Partners and CPP’s talented management team,” Warburg Pincus Managing Director Dan Zamlong said. “CPP has been transformed into a leading precision casting company in the industry, with significant investments in its operations, technology, quality systems and talent, while expanding its ability to support customers across the commercial aerospace, defense, and power generation markets.”

Berkshire Partners Managing Director Blake Gottesman said Berkshire Partners was grateful to have partnered with CPP’s management team and Warburg Pincus during a critical chapter of the company’s growth.