GE Aerospace to Buy Consolidated Precision Products for $11.75 Billion -- 2nd Update

By Colin Kellaher and Drew FitzGerald

GE Aerospace agreed to buy metal-castings provider Consolidated Precision Products for $11.75 billion, placing a large bet on the advanced materials needed to keep its advanced engines cool.

The engine maker said its purchase from private investment firms Warburg Pincus and Berkshire Partners will help the Evendale, Ohio, company meet surging demand for its engines. About 60% of the CPP's revenue came from commercial aerospace customers, with the remainder from defense, power and other markets.

GE Aerospace said it plans to fund the acquisition, slated to close in the second half of 2027, with $7 billion in cash on hand and the remainder in new debt, adding that the deal doesn't change its capital-allocation plans.

Engine makers like GE Aerospace, RTX's Pratt & Whitney and others are struggling to keep up with growing orders for both commercial aircraft and military jets. Soaring investment in artificial intelligence infrastructure also is spurring demand for turbines to power data centers.

CPP's airfoil technology helps keep engine surfaces cooler, which helps efficiency and durability. Airlines have struggled with engine-wear issues in recent years that have cut into their planes' availability between shop visits.

"We've been working very hard with the engine suppliers to get those engines improved so that they they're on-wing as long as the airlines have expected," Boeing Chief Executive Kelly Ortberg said in a recent interview.

Cleveland-based CPP is one of four major makers of precision castings. Its purchase will help GE Aerospace build next-generation engines, shorten development cycles and ensure its plants are ready to meet demand, Sheila Kahyaoglu, an analyst at investment bank Jefferies, wrote in a note to clients.

SpaceX has meanwhile started work on a new factory to forge turbine parts for its own needs. But the market is hard to break into without significant capital.

"Once the equipment is in place, reaching mature manufacturing yields of 75%+ can take years, up to decades" for some advanced technology, Kahyaoglu wrote.

Write to Colin Kellaher at colin.kellaher@wsj.com and Drew FitzGerald at andrew.fitzgerald@wsj.com

(END) Dow Jones Newswires

September 08, 2026 10:07 ET (14:07 GMT)