GE Aerospace announced that it will acquire cast-components manufacturer CPP for $11.75 billion. The acquisition is intended to establish a system for stable procurement of critical components.
GE Aerospace announced that it will acquire cast-components manufacturer CPP for $11.75 billion. Upon completion of the transaction, CPP is expected to become a core part of GE Aerospace's supply chain, supporting a stable supply of critical components.
CPP manufactures cast components and is reported to have supplied parts for aircraft engines and related components. Through the acquisition, GE Aerospace aims to strengthen its ability to secure the components it needs.
The acquisition is proceeding on the basis that US investment firms Warburg Pincus and Berkshire Partners are CPP shareholders. GE Aerospace said it will fund $7 billion of the purchase price with cash on hand and the remainder through new borrowing.
The announcement indicates that integrating CPP's manufacturing capabilities and supply chain into GE's aircraft-engine business will enable the stable procurement of critical components.