🕒 Created

GE Aerospace Acquires Consolidated Precision Products for Nearly $12 Billion to Strengthen Supply Chain

GE Aerospace spent nearly $12 billion to acquire Consolidated Precision Products, a castings specialist. The administration announced that the acquisition aims to integrate a key segment into the supply chain for both commercial and defense aviation.

Show the rest of this summary

Jim Cramer noted that the acquisition will allow GE Aerospace to accelerate production and provide benefits to Boeing, a major customer of GE Aerospace. While GE Aerospace reported second-quarter revenue of $13.3 billion, a 21% year-over-year increase, The Boeing Company reported $24.6 billion in second-quarter revenue. GE Aerospace is funding the acquisition with a mix of cash and new debt financing. The Boeing Company carries a consolidated debt load of $45.9 billion and continues to face operational losses in its Commercial Airplanes segment. Both companies maintain significant order backlogs, with GE Aerospace exceeding $210 billion and The Boeing Company reaching $715 billion.

Sources

Paywall and unreadable sources