What Happened
Vertical Integration Trend Continues in Aerospace Industry
GE Aerospace has announced the acquisition of Consolidated Precision Products, a major component manufacturer, for $11.7 billion. The deal is expected to be earnings per share accretive in year one and may indicate a trend towards vertical integration in the aerospace industry. According to Motley Fool contributors, the acquisition could lead to increased efficiency and reduced costs for GE Aerospace, but may also pose a threat to other component manufacturers. The deal was discussed on The Motley Fool’s Hidden Gems Investing podcast, which noted that the high valuation of the deal suggests a trend towards consolidation in the industry.