Warburg Pincus and Berkshire Partners have agreed to sell aerospace components manufacturer Consolidated Precision Products (CPP) to GE Aerospace for $11.75bn, according to Private Equity Wire. The transaction is described as a major exit from the sponsors’ joint investment, and the report attributes the news to Private Equity Hub.
Deal terms and financing
The acquisition price is $11.75bn and GE Aerospace will fund the deal with $7bn of cash, with the remainder financed through new debt, according to Private Equity Wire. The transaction values CPP at approximately 18 times expected 2027 EBITDA when anticipated synergies are included, rising to around 26 times EBITDA on a standalone basis. GE Aerospace expects the transaction to contribute positively to adjusted earnings per share and free cash flow during its first year of ownership.
Closing is expected in the second half of 2027, and the acquisition will be integrated in a disciplined manner, according to Private Equity Wire.
CPP operations, footprint, and customer relationship
CPP is headquartered in Cleveland, Ohio, and manufactures highly engineered castings and sub-assemblies for the commercial aerospace and defence sectors. The company employs around 6,600 people across more than 20 facilities. CPP has supplied GE Aerospace for more than 15 years.
Founded in 1991, CPP produces castings from super alloys, titanium, aluminium, magnesium and steel for applications spanning commercial and military aircraft, weapon systems, business jets, helicopters and industrial gas turbines.
Integration plan and operating system
GE Aerospace intends to integrate CPP using its Flight Deck operating system, with the aim of increasing manufacturing capacity and accelerating the development and production of new engine technologies. The report states that GE Aerospace expects positive contributions to adjusted earnings per share and free cash flow in the first year of ownership.
Sponsor commentary and fund context
For Warburg Pincus and Berkshire Partners, the transaction crystallises value following a period of investment in CPP’s manufacturing operations, technology, quality systems and workforce. Warburg Pincus managing director Dan Zamlong said the sponsors had transformed CPP into a leading precision casting business through investments made alongside management. Berkshire Partners managing director Blake Gottesman said the firms had strengthened CPP’s position in the castings market during their ownership.
The deal is described as another significant realisation for Warburg Pincus, which has invested across aerospace and defence and industrial technology. Berkshire Partners is investing from its $7.8bn eleventh private equity fund, according to Private Equity Wire.
