In an $11.8 billion deal, GE Aerospacehas agreed to take over a Cleveland-based supplier that it says will help it grow faster.
The Evendale, Ohio-based jet engine manufacturer has agreed to buy Consolidated Precision Products, which makes highly engineered cast parts. The manufacturer is acquiring the company from private investment firms Warburg Pincusand Berkshire Partners.
Founded in 1991, Consolidated Precision Products is touted as a major producer of complex superalloy, titanium, aluminum, magnesium and steel castings for a variety of leading commercial and military aircraft, weapon systems, commercial and regional/business jets, helicopters and industrial gas turbines.
Adding thousands of jobs, but eyeing millions in 'synergies'
The transaction, expected to close in the second half of 2027, would
add potentially thousands of jobs to GE Aerospace’s payroll of 57,000. Consolidated Precision Products boasts 6,600 workers at 20 locations worldwide.
GE Aerospace officials did not respond to questions about potential layoffs, but an investment presentationsubmitted to the U.S. Securities and Exchange Commission outlined plans to squeeze $200 million in “synergies” over the next three years. They added they expected the acquisition would boost profits in the first year after closing.
The deal comes at a time when GE Aerospace is growing robustly, with sales jumping 18.5% last year to $45.9 billion.
“Investing in mission-critical casting capacity is needed to support the strong simultaneous demand across commercial engines, aftermarket and defense,” GE Aerospace CEO Larry Culp said in a statement. “We expect to expand capacity, improve performance and accelerate new engine technologies for the current fleet and next-generation platforms.”
A big deal among a flurry of transactions by region's largest employers
GE Aerospace’s deal also comes amid a spate of recent deals by the region’s other Fortune 500 companies – and trumps them in terms of dollar value:
- On Feb. 2, Fifth Third closed on its $10.8 billion deal to take over Comerica
- On March 11, Cintas cut a deal to acquire Massachusetts-based rival UniFirst for $5.5 billion
- On Aug. 4,Procter & Gamble unveiled plans to buy supplements makerThorne for $3.8B
- On July 1, Kroger announced plans to take over grocer Giant Eaglefor nearly $1.7 billion
This article originally appeared on Cincinnati Enquirer: GE Aerospace to buy Ohio supplier for $11.8B, affecting 6.6K jobs
