U.S.-based GE Aerospace announced that it will acquire casting parts maker CPP for approximately $11.75 billion, saying it plans to vertically integrate its engine-parts supply chain and strengthen production capacity. The acquisition is expected to close in the second half of 2027.
U.S.-based GE Aerospace announced that it will acquire casting parts maker CPP for approximately $11.75 billion. The stated aim is to directly address constraints in the engine-related supply chain and expand production capacity.
CPP is a leading manufacturer of precision sand-cast parts, produced by pouring molten material into molds. It is a major supplier to GE's LEAP and GE9X engines and plays an important role in supplying parts for current-generation commercial aircraft. GE expects CPP to generate approximately $2 billion in revenue in 2027.
In terms of the acquisition valuation, CPP is valued at approximately 26 times projected 2027 core earnings, falling to approximately 18 times after taking integration benefits into account. The plan is to fund the acquisition with $700 million in cash and finance the remainder through new borrowing. The acquisition is expected to close in the second half of 2027.