GE Aerospace (GE) Acquires CPP for $12 Billion to Boost Growth

GE Aerospace (NYSE: GE) is acquiring Consolidated Precision Products (CPP) for approximately $12 billion, marking its largest acquisition since becoming a standalone company. This deal is aimed at enhancing control over precision castings, vital for the aerospace engine supply chain, as GE faces significant demand with a backlog exceeding $210 billion. It is anticipated that CPP will generate around $2 billion in revenue in 2027. The success of this acquisition will depend on producing enough free cash flow to justify the premium price paid for CPP, which is valued at about 26 times expected 2027 EBITDA.