GE Aerospace (GE) Stock Falls as $11.75 Billion Casting Bet Raises Eyebrows

TLDR

• GE Aerospace is acquiring Consolidated Precision Products (CPP) for $11.75 billion in its first major deal since the GE breakup.
• The deal values CPP at roughly 26 times estimated 2027 Ebitda before synergies, or 18 times with expected cost savings.
• GE Aerospace plans to fund the acquisition with cash and debt, and expects it to add to EPS in year one.
• The announcement comes after Elon Musk flagged turbine blade casting as a bottleneck for AI-driven power demand.
• GE stock was down 0.6% in premarket trading after the deal was announced.

GE Aerospace (NYSE: GE) stock slipped 0.6% in premarket trading on Tuesday after the company announced it would acquire casting specialist Consolidated Precision Products for $11.75 billion.

GE Aerospace, GE

The deal is the first major acquisition for GE Aerospace since CEO Larry Culp split the old General Electric into three separate companies: GE HealthCare Technologies, GE Vernova, and GE Aerospace.

GE Aerospace plans to pay using a mix of cash and debt. The company expects the transaction to be accretive to earnings per share in its first full year.

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