GE Aerospace agreed to acquire Consolidated Precision Products for $11.75 billion, its largest deal since the 2024 spin-off, paying $7 billion in cash and issuing new debt for the balance to secure a supplier that feeds roughly a quarter of its casting needs.
The structure is straightforward
The consideration is split between $7 billion in cash and approximately $4.75 billion in new borrowing. No equity component was disclosed. The source does not mention a break fee, a go-shop period, or any condition beyond customary antitrust clearance. CPP has been a long-standing vendor; bringing it inside the fence removes a single-source dependency that GE itself describes as a bottleneck.
The numbers GE is willing to share
GE expects CPP to generate about $2 billion in revenue in 2027, the first full year under its ownership. The company claims the deal will lift adjusted profit per share and free cash flow even in year one. That guidance is not backed by a pro-forma income statement in the release. The $210 billion backlog stretching into the 2030s is cited as the revenue visibility that makes the outlay palatable.
The valuation context
Shares have risen 5 percent in 2026, though a recent pullback has left the stock trading at forward and trailing price-earnings multiples near 40 times and a PEG ratio above 4. The acquisition multiple is not explicitly stated, but at roughly six times the projected 2027 revenue it implies a premium for control of a scarce asset class, aerospace castings, where global capacity is constrained.
Antitrust and execution risk
The deal will face antitrust scrutiny given CPP’s role as one of only a handful of global suppliers. GE argues the transaction loosens a bottleneck for its own manufacturing while making supply tighter for competitors. Regulators may view that logic differently. Until clearance arrives, the $7 billion cash commitment and new debt sit on the balance sheet without the offsetting cash flows GE is counting on.