GE Aerospace to buy castings supplier for nearly $12 billion to tackle engine bottleneck

GE Aerospace announced plans on September 8 to acquire casting supplier Consolidated Precision Products (CPP) for $11.75 billion. This acquisition aims to bolster GE Aerospace's engine production capacity amid supply-chain constraints that have hindered the industry's ability to meet the surging demand for new engines, aftermarket parts, and repairs.

With a large backlog stretching into the next decade, GE Aerospace seeks to secure sufficient capacity to fulfill existing orders. The deal, GE Aerospace's largest since becoming an independent company in 2024, marks a strategic move to control a crucial portion of its supply chain. CPP, a leading manufacturer of precision sand castings, supplies critical components to GE's LEAP and GEnx commercial engines and serves nearly all major current-generation commercial aircraft programs, with about 70% of its revenue originating from commercial and defense engines.

GE anticipates CPP's revenue to reach $2 billion in 2027 and a 30% increase in demand for airfoils by 2030 compared to 2026 levels. Airfoils, which encompass turbine blades and vanes exposed to intense heat within engines, are in high demand from both aircraft manufacturers seeking new engines and airlines requiring additional parts and repairs.

The acquisition is projected to boost CPP's output through improved factory yields, machine utilization, and reduced scrap and rework. GE Aerospace's CEO, Larry Culp, emphasized the importance of vertical integration to better manage critical supply-chain components and plan for long-term capacity expansion. Analysts view the acquisition as a strategic decision, as engine castings remain scarce, and the deal could potentially impact CPP's other customers, including RTX and Howmet Aerospace.