GE Aerospace Is Making a $12 Billion Acquisition. Here's What Investors Should Know.

GE Aerospace is acquiring Consolidated Precision Products for $11.75 billion in its largest transaction since spinning off as an independent company in 2024. The deal brings a critical supplier in-house—CPP currently provides approximately 25% of GE's aerospace castings needs—addressing supply chain bottlenecks as the company works through a $210 billion backlog stretching into the 2030s.

GE (GE) will finance the acquisition with $7 billion in cash and new debt. Management expects the transaction to be accretive to adjusted earnings per share and free cash flow in year one, though the deal faces antitrust review given the vertical integration of a major supplier.

The acquisition reflects the tight capacity constraints across the aerospace supply chain. By securing CPP's production capacity, GE aims to support delivery schedules tied to its massive order book while potentially improving margins through vertical integration of a key component supplier.