Honeywell Endorses GE's $11.75 Billion Castings Acquisition
GE Aerospace, a commercial and defense engine manufacturer, has received a vote of confidence from across the industry after Honeywell Aerospace's CEO said its planned castings acquisition could be positive for the broader aerospace supply chain.
The acquisition, valued at $11.75 billion, will see GE take control of Consolidated Precision Products, a producer of critical components used in jet engines and other high-stress applications.
According to Reuters, Honeywell's endorsement strengthens the industrial case for the deal, but investors still need to weigh integration risk, additional leverage, and the premium already embedded in the stock.
The transaction is expected to close in the second half of 2027, pending regulatory approval. GE generated $3 billion of free cash flow in the second quarter, which puts the acquisition value at roughly 3.9 times that single quarter's cash generation.