GE Aerospace's $12 Billion Acquisition Boosts Industry Confidence

Honeywell Aero's CEO has given his take on GE Aerospace's planned acquisition of Consolidated Precision Products (CPP) for $12 billion. The deal aims to boost casting capacity and support engine production demand, with GE Aerospace expecting it to be accretive to earnings per share and free cash flow in the first year.

Honeywell Aero CEO Jim Currier views the acquisition as 'positive' for the industry overall. He believes that the type of parts received from CPP are different from those received by GE Aerospace, suggesting healthy industry segregation.

Honeywell Aero has been working to bring previously outsourced manufacturing capabilities in-house over the past two years. While there is still more work to be done, Currier sees opportunities for short-term and long-term expansion of this strategy.