Warburg Pincus and Berkshire Partners have agreed to sell aerospace components manufacturer Consolidated Precision Products (CPP) to GE Aerospace for $11.75bn, securing a major exit from their joint investment, according to a report by Private Equity Hub.
Cleveland, Ohio-based CPP 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 and has supplied GE Aerospace for more than 15 years.
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 will fund the acquisition with $7bn of cash, with the remainder financed through new debt. The aerospace group expects the transaction to contribute positively to adjusted earnings per share and free cash flow during its first year of ownership.
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.
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.
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 acquisition will be integrated in a disciplined manner, with closing expected in the second half of 2027.
The deal represents another significant realisation for Warburg Pincus, which has invested across aerospace and defence and industrial technology, while Berkshire Partners is investing from its $7.8bn eleventh private equity fund.
