Cramer: GE Aerospace’s $12 Billion Acquisition Is ‘Going to Send This Stock Up’

Aerospace M&A activity is accelerating due to clearer production schedules from Boeing and Airbus, with 154 deals totaling $14B through August, nearing the 2019 record. GE Aerospace acquired Consolidated Precision Products for $12B, and Parker Hannifin agreed to buy Circor’s aerospace division for $2.6B. Boeing's deliveries are stabilizing, while Airbus aims to exceed pre-pandemic records.

GE Aerospace (GE) agreed to acquire Consolidated Precision Products (CPP) for $11.75 billion from Warburg Pincus and Berkshire Partners. CPP manufactures castings for aerospace and defense. GE will finance the deal with cash and debt, expecting it to close in 2H 2027. The acquisition aims to boost casting capacity and earnings, with shares unchanged premarket.

GE Aerospace (GE) agreed to buy Consolidated Precision Products (CPP) for $11.75 billion. The acquisition aims to address a bottleneck in precision engine castings, crucial for GE's engine production and aftermarket services. GE is paying 18x 2027 EBITDA, including synergies, and will fund the deal with cash and debt. The acquisition is expected to be accretive to adjusted EPS and free cash flow in the first year, but it faces antitrust scrutiny and requires strong aerospace demand to justify th

Jim Cramer discussed GE Aerospace's $11.75 billion acquisition of Consolidated Precision Products, highlighting its strategic importance for supply chain control and growth in commercial and defense aviation. GE's Q2 revenue rose 21% YoY to $13.3 billion, with a $210 billion backlog. Boeing, a key customer, reported Q2 revenue of $24.6 billion and a $715 billion backlog but faces supply chain and debt challenges. Both companies are integral to the aerospace sector's long-term growth.

GE Aerospace agreed to acquire Consolidated Precision Products (CPP), a leading producer of jet engine parts, for $11.75 billion. The deal aims to address a supply shortage in critical airfoil components, with demand growing over 30%. CPP, a long-time supplier, will be integrated to support GE Aerospace's commercial, aftermarket, and defense programs. The acquisition is expected to close in late 2027, subject to regulatory approvals.

Elon Musk's announcement that SpaceX will manufacture turbine blades in-house caused Howmet Aerospace (HWM) shares to drop over 10%. GE Aerospace (GE) responded by acquiring Consolidated Precision Products for $11.75B, citing the strategic importance of securing engine production. Analysts note that demand for turbine blades is expected to grow 30% by 2030, and GE will still rely on third-party suppliers like Howmet.