Warburg Pincus, Berkshire Partners agree to $11.75bn exit of CPP to GE Aerospace

• The deal will be financed with $7bn in cash and the remainder in new debt, with no change to GE Aerospace’s capital allocation plans
• The transaction values CPP at approximately 18x expected 2027 EBITDA including projected synergies, or 26x without them
• GE Aerospace plans to apply its Flight Deck operating system to CPP’s manufacturing to expand capacity and speed new engine technologies

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.

CPP, headquartered in Cleveland, Ohio, manufactures highly engineered castings and sub-assemblies for the commercial aerospace and defense markets. Founded in 1991, the company produces super alloy, titanium, aluminum, magnesium and steel castings for commercial and military aircraft, weapon systems, business jets, helicopters and industrial gas turbines, according to the release.

The purchase price will be financed with $7 billion in cash and the balance in new debt. The deal values CPP at roughly 18 times expected 2027 EBITDA including anticipated synergies, or 26 times without them, and is expected to be accretive to adjusted earnings per share and free cash flow in its first year.

“We are incredibly proud of the platform we have built in partnership with Berkshire Partners and CPP’s talented management team,” said Dan Zamlong, managing director at Warburg Pincus. “CPP has been transformed into a leading precision casting company in the industry, with significant investments in its operations, technology, quality systems and talent.”

“Berkshire Partners is grateful to have partnered with CPP’s management team and Warburg Pincus during a critical chapter of the company’s growth,” said Blake Gottesman, managing director at Berkshire Partners. “Together, we have strengthened CPP’s leadership in the castings industry.”

Warburg Pincus has been an active investor in the aerospace and defense and industrial technology sectors, with a portfolio that has included Duravant, Sundyne, TransDigm and Wencor Group, among others. Berkshire Partners is currently investing from its eleventh fund, with about $7.8 billion in commitments, and has made more than 140 private equity investments since its founding.

GE Aerospace and CPP are planning a disciplined, well-planned integration, and the transaction is expected to close in the second half of 2027.

Morgan Stanley and Guggenheim Securities served as financial advisors and Cleary Gottlieb served as legal counsel to CPP. Evercore and PJT Partners served as financial advisors and Paul Weiss Rifkind Wharton & Garrison served as lead legal counsel to GE Aerospace.

Editor’s note: This news brief was produced with the assistance of artificial intelligence.