GE Aerospace to buy castings maker CPP for nearly $12 billion

JUST IN: GE Aerospace to buy castings maker CPP for nearly $12 billion.

GE Aerospace is spending nearly 12 billion dollars on a company that pours metal.

Consolidated Precision Products makes castings, the mission-critical parts that go inside jet engines, and GE is buying it from Warburg Pincus and Berkshire Partners for 11.75 billion. You can see the announcement here, and the logic is simple. GE builds the engines, so why keep renting the supply chain when you can own it.

CEO Larry Culp says the casting capacity is needed because demand is running hot everywhere at once, commercial engines, aftermarket, and defense. When a boss drops that much cash on a supplier, he's telling you he expects the order book to stay stuffed for years.

The deal won't close until the second half of 2027, but GE says it pays off immediately, boosting profit per share and free cash flow in year one. Two private equity firms just got a very happy Tuesday.

This is Dave King, reporting for HIT.