Warburg Pincus, Berkshire Partners agree to $11.75bn exit of CPP to GE Aerospace
Warburg Pincus and Berkshire Partners have agreed to sell Consolidated Precision Products to GE Aerospace for $11.75 billion, exiting an investment the two private equity firms have held jointly.
The private equity firms Warburg Pincus and Berkshire Partners have reached an agreement to sell Consolidated Precision Products (CPP) to GE Aerospace. The transaction is valued at $11.75 billion, marking an exit for the two firms from their joint investment in CPP.
Consolidated Precision Products, headquartered in Cleveland, Ohio, specializes in manufacturing highly engineered castings and sub-assemblies. The company serves both the commercial aerospace and defense sectors. Its product range includes super alloy, titanium, aluminum, magnesium, and steel castings, which are utilized in commercial and military aircraft, weapon systems, business jets, helicopters, and industrial gas turbines.
The acquisition's financing structure involves $7 billion in cash, with the remaining portion to be covered by new debt. GE Aerospace has stated that this financing plan will not alter its existing capital allocation strategies.
From a valuation perspective, the deal implies an approximate multiple of 18 times CPP's expected 2027 EBITDA, including projected synergies. Without these synergies, the valuation stands at approximately 26 times expected 2027 EBITDA. GE Aerospace intends to implement its Flight Deck operating system within CPP's manufacturing operations to enhance capacity and accelerate the development of new engine technologies.
This divestment highlights continued strategic activity within the aerospace and defense manufacturing sector, particularly for suppliers of critical components. The high valuation multiples suggest strong market confidence in companies with specialized manufacturing capabilities and a clear path for integration-driven efficiencies, signaling potential for further consolidation or investment in this niche.