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GE Aerospace CEO Larry Culp is initiating a potentially tectonic shift for aerospace with an $11.75 billion acquisition that takes aim at a critical supply-chain chokepoint: shortages of engine parts designed to withstand punishing, blast-furnace-like conditions.
The proposed takeover of Consolidated Precision Products (CPP) is Culp’s largest deal so far and marks a strategic break from his predecessors, who often pursued mergers to gain market dominance. Culp’s modus operandi is coming into sharper focus as he trains GE’s deal-making might on addressing a vulnerability disrupting its factories.
Related: GE’s quest to keep an engine on the wing where it belongs
If he’s successful, the world’s largest engine manufacturer will have greater control to fulfill its enormous civil and defense backlogs — and prepare for the opportunity ahead as Airbus and Boeing plot replacements for their single-aisle jets.
“There’s no question, this is more than just addressing a bottleneck in the near-term,” Culp told The Air Current in a Sept. 8 interview after the deal was announced.
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