GE Aerospace Buys CPP

GE Aerospace will acquire castings supplier CPP for $11.75 billion to expand engine production capacity.

Transcript

00:00It's Benzinga bringing Wall Street to Main Street.

00:02GE Aerospace said Tuesday it will buy castings, supplier consolidated precision products for $11.75

00:09billion, bringing a key part of its engine supply chain in-house as it works to expand

00:14production capacity, according to Reuters. The deal is GE Aerospace's largest since

00:20becoming a standalone company in 2024. CPP supplies parts for GE's LEAP and GNX engines

00:26and is expected to generate about $2 billion in revenue in 2027.

00:31GE expects demand for airfoils, a part used for turbine blades and vanes, to rise more than 30%

00:37by 2030 from 2026 levels. The company plans to raise CPP output by improving factory yields

00:44and machine use while reducing scrap and rework. GE will fund $7 billion of the purchase,

00:51with cash and the remainder with new debt. The deal is expected to close in the second half

00:56of 2027. For all things money, visit Benzinga.com.