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GE Expands Mission-Critical Castings Capacity Through CPP Acquisition
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Key Takeaways
GE Aerospace will acquire CPP from Warburg Pincus and Berkshire Partners.
CPP makes mission-critical components for commercial and military aircraft engines.
GE Aerospace says the deal will expand manufacturing capacity and capabilities.
GE Aerospace (GE - Free Report) has inked a deal to acquire Consolidated Precision Products (“CPP”) from private investment firms Warburg Pincus and Berkshire Partners. The transaction was valued at approximately $11.75 billion in total using $7 billion in cash and debt for the remaining consideration.
Based in Cleveland, OH, CPP is engaged in producing precision-engineered castings and sub-assemblies for commercial aerospace and defense applications. It supplies complex alloy castings for commercial and military aircraft, weapon systems, helicopters and industrial gas turbines. The company was established in 1991 and employs about 6,600 personnel across more than 20 facilities.
Acquisition Rationale of GE Aerospace
The latest acquisition aligns with GE’s strategy of acquiring businesses to expand its market share and customer base. The acquisition of CPP is expected to strengthen the company’s supply chain, expand critical casting capacity and improve manufacturing performance to support strong demand across commercial engines, aftermarket and defense markets. The transaction is also anticipated to support long-term growth by leveraging GE Aerospace’s FLIGHT DECK platform to enhance manufacturing and engineering capabilities and accelerate the development of new engine technologies.
The deal is expected to close in the second half of 2027, subject to regulatory approvals and other customary closing conditions.
GE’s Zacks Rank & Price Performance
GE Aerospace has been witnessing strength in its businesses, driven by robust demand for commercial engines, propulsion and additive technologies. Rising U.S. & international defense budgets, geopolitical tensions, positive airline & airframer dynamics and robust demand for commercial air travel augur well for the company.
The company currently sports a Zacks Rank #3 (Hold). In the past year, its shares have gained 18.1% against the industry’s 3% decline.
Image Source: Zacks Investment Research
However, it has been dealing with high costs and expenses related to certain projects and restructuring activities, which are likely to affect its margins and profitability.
HWM delivered a trailing four-quarter average earnings surprise of 6.9%. In the past 60 days, the Zacks Consensus Estimate for Howmet’s 2026 earnings has increased 5.6%.
Archer Aviation Inc. (ACHR - Free Report) currently carries a Zacks Rank of 2. ACHR delivered a trailing four-quarter average earnings surprise of 18.4%.
In the past 60 days, the Zacks Consensus Estimate for Archer Aviation’s 2026 earnings has increased 5.9%.
RTX Corporation (RTX - Free Report) presently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 14.2%.
In the past 60 days, the consensus estimate for RTX’s 2026 earnings has increased 4.3%.
View the Zacks #1 Rank List
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GE Expands Mission-Critical Castings Capacity Through CPP Acquisition
Key Takeaways
GE Aerospace (GE - Free Report) has inked a deal to acquire Consolidated Precision Products (“CPP”) from private investment firms Warburg Pincus and Berkshire Partners. The transaction was valued at approximately $11.75 billion in total using $7 billion in cash and debt for the remaining consideration.
Based in Cleveland, OH, CPP is engaged in producing precision-engineered castings and sub-assemblies for commercial aerospace and defense applications. It supplies complex alloy castings for commercial and military aircraft, weapon systems, helicopters and industrial gas turbines. The company was established in 1991 and employs about 6,600 personnel across more than 20 facilities.
Acquisition Rationale of GE Aerospace
The latest acquisition aligns with GE’s strategy of acquiring businesses to expand its market share and customer base. The acquisition of CPP is expected to strengthen the company’s supply chain, expand critical casting capacity and improve manufacturing performance to support strong demand across commercial engines, aftermarket and defense markets. The transaction is also anticipated to support long-term growth by leveraging GE Aerospace’s FLIGHT DECK platform to enhance manufacturing and engineering capabilities and accelerate the development of new engine technologies.
The deal is expected to close in the second half of 2027, subject to regulatory approvals and other customary closing conditions.
GE’s Zacks Rank & Price Performance
GE Aerospace has been witnessing strength in its businesses, driven by robust demand for commercial engines, propulsion and additive technologies. Rising U.S. & international defense budgets, geopolitical tensions, positive airline & airframer dynamics and robust demand for commercial air travel augur well for the company.
The company currently sports a Zacks Rank #3 (Hold). In the past year, its shares have gained 18.1% against the industry’s 3% decline.
Image Source: Zacks Investment Research
However, it has been dealing with high costs and expenses related to certain projects and restructuring activities, which are likely to affect its margins and profitability.
Stocks to Consider
Some better-ranked companies are discussed below:
Howmet Aerospace Inc. (HWM - Free Report) currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
HWM delivered a trailing four-quarter average earnings surprise of 6.9%. In the past 60 days, the Zacks Consensus Estimate for Howmet’s 2026 earnings has increased 5.6%.
Archer Aviation Inc. (ACHR - Free Report) currently carries a Zacks Rank of 2. ACHR delivered a trailing four-quarter average earnings surprise of 18.4%.
In the past 60 days, the Zacks Consensus Estimate for Archer Aviation’s 2026 earnings has increased 5.9%.
RTX Corporation (RTX - Free Report) presently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 14.2%.
In the past 60 days, the consensus estimate for RTX’s 2026 earnings has increased 4.3%.