Investing.com -- GE Aerospace announced Tuesday it signed an agreement to purchase Consolidated Precision Products from private investment firms Warburg Pincus and Berkshire Partners for $11.75 billion.

CPP manufactures engineered castings and sub-assemblies for the commercial aerospace and defense markets. The Cleveland, Ohio-based company produces investment and precision sand castings, including complex super alloy, titanium, aluminum, magnesium and steel castings for commercial and military aircraft, weapon systems, jets, helicopters and industrial gas turbines. CPP employs approximately 6,600 workers across more than 20 facilities.

GE Aerospace Chairman and CEO H. Lawrence Culp, Jr. said the acquisition addresses the need for casting capacity to meet demand across commercial engines, aftermarket and defense sectors. He said combining GE Aerospace's technology with CPP's manufacturing experience should expand capacity and speed development of engine technologies.

GE Aerospace has been a CPP customer for over fifteen years. Founded in 1991, CPP stands as one of the world's largest producers of investment and precision sand castings.

The transaction values CPP at approximately 18 times 2027 EBITDA including expected net synergies, or approximately 26 times without synergies. GE Aerospace will finance the purchase with $7 billion in cash and the remainder in new debt.

The acquisition is expected to add to adjusted earnings per share and free cash flow in the first year. GE Aerospace said the transaction will not change its capital allocation plans.

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

Evercore and PJT Partners serve as lead financial advisors to GE Aerospace, while Morgan Stanley and Guggenheim Securities advise CPP on the transaction.

The company's shares traded roughly flat in pre-market activity Tuesday following the announcement.