GE Aerospace is strengthening a critical part of its global supply chain with an agreement to acquire Consolidated Precision Products (CPP) for $11.75bn, bringing a major precision castings supplier into the aerospace giant’s business.
Announced on 8 September, the deal is designed to expand manufacturing capacity as demand continues to rise across commercial aircraft engines, aftermarket services and defence. CPP produces highly engineered castings and sub-assemblies used across commercial and military aircraft, as well as industrial gas turbines. GE Aerospace has worked with CPP for more than 15 years.
The acquisition highlights the growing importance of securing specialist manufacturing capabilities within complex global supply chains. Precision castings are among the more difficult aerospace components to produce, with lengthy processes and highly specialised skills required to meet demanding quality standards. Reuters reported that shortages of castings have become a significant production bottleneck for the aerospace industry as manufacturers work to meet strong long-term aircraft demand.
CPP has around 6,600 employees across more than 20 facilities and manufactures components using superalloys, titanium, aluminium, magnesium and steel. Its products support a wide range of aircraft programmes, including engines such as GE’s LEAP and GEnx.
For GE Aerospace, bringing CPP into the business is intended to provide greater control over a strategically important part of production while creating opportunities to increase output and improve manufacturing processes. The company plans to apply its FLIGHT DECK operating model and technology capabilities across CPP, with further investment planned over time.
The move also reflects a wider shift in supply chain strategy. Rather than relying solely on traditional supplier relationships, major manufacturers are increasingly looking to secure capacity, specialist expertise and critical components as demand grows. Reuters reported this week that aerospace dealmaking is accelerating, with buyers targeting suppliers that offer scarce skills and specialised manufacturing capabilities.
GE Aerospace expects the transaction to be completed in the second half of 2027, subject to regulatory approvals and other customary conditions. The company says the deal is expected to be accretive to adjusted earnings per share and free cash flow in its first year, excluding one-time costs and deal-related amortisation.
The acquisition demonstrates how supply chain resilience is becoming increasingly tied to investment in manufacturing capacity. For aerospace manufacturers facing sustained demand, securing access to the people, technology and production capabilities behind critical components could prove just as important as winning new orders.
Source: GE Aerospace, Reuters
Image: CPP investment casting facility