GE Aerospace (NYSE: GE) is making a big bet on the humble casting. On Tuesday, the company announced it will acquire Consolidated Precision Products (CPP) for $11.75 billion, a move designed to expand its casting capacity as demand soars across commercial aviation, aftermarket services, and defense.

CPP, which makes highly engineered castings and subassemblies for commercial aerospace and defense customers, is being bought from private investment firms Warburg Pincus and Berkshire Partners. The Cleveland-based company employs about 6,600 people across more than 20 facilities. GE Aerospace has been a CPP customer for more than 15 years.

CEO H. Lawrence Culp Jr. said the additional casting capacity is needed to meet strong demand across GE's businesses. The plan is to combine GE's technology and its FLIGHT DECK operating model with CPP's manufacturing capabilities. The hope is that this combination will increase output, improve quality, and speed up the development of engine technologies for both current and next-generation aircraft.

Here's how the deal breaks down financially: GE Aerospace will finance the acquisition with $7 billion in cash and the remainder through new debt. As of the fiscal quarter ending June 30, 2026, the company reported $9.35 billion in cash and cash equivalents, so it has the liquidity to handle this.

The purchase price values CPP at about 18 times projected 2027 EBITDA, including expected net synergies. Without those synergies, the multiple jumps to about 26 times. That's a hefty price, but GE expects the transaction to boost adjusted earnings per share and free cash flow in the first year. Importantly, the company said the acquisition will not change its existing capital allocation plans.

The transaction is expected to close in the second half of 2027, subject to regulatory approvals and customary closing conditions.

Investors seemed cautiously optimistic. GE Aerospace shares were up 0.19% at $337.77 at the time of publication on Tuesday.

This deal is a clear signal that GE Aerospace sees casting capacity as a critical bottleneck for future growth. By bringing CPP in-house, GE is not just securing supply; it's betting that the combination of its technology and CPP's manufacturing prowess will lead to better engines, faster development, and ultimately, a stronger competitive position in the aerospace market.