GE Aerospace Is Spending $12 Billion on an Acquisition. Is It Still the Best Aerospace Stock to Own?

GE announced a $12 billion acquisition of Consolidated Precision Products, the largest deal since GE Aerospace spun off as an independent entity in 2024. The transaction brings precision casting capabilities in-house and is expected to deliver immediate earnings accretion, according to management.

CPP is valued at 26x estimated 2027 EBITDA. When factoring in anticipated synergies from vertical integration, the effective multiple drops to 18x. GE projects cost savings and supply chain advantages from owning the precision casting operation rather than contracting externally.

The deal marks GE's most aggressive M&A move in its aerospace-focused incarnation. Management highlighted operational efficiency gains and reduced supply chain risk as key strategic drivers. The acquisition positions GE to control more of its component production, a shift from its historical reliance on third-party suppliers for precision-cast parts.