GE Aerospace has acquired Fenico Precision Castings Inc. for $11.8 billion, a cash transaction that adds a specialized supplier of complex metal components to its manufacturing network. The deal, finalized this week, transfers full ownership of the Paramount, California-based foundry to the aviation and defense giant.
Fenico, incorporated in 1988, produces castings from a broad range of ferrous and non-ferrous alloys. Its output serves industries including pumps, valves, automotive, marine, food machinery, firearms, and glass container manufacturing through bottle mold castings. GE Aerospace, a leading producer of jet engines and related systems, will integrate Fenico’s capabilities into its supply chain for critical engine parts.
The acquisition is driven by GE Aerospace’s need to secure long-term capacity for precision components used in commercial and military engines. Fenico’s expertise in casting diverse alloys, particularly its ability to handle complex geometries, aligns with the aerospace sector’s demand for durable, high-tolerance parts. By bringing this foundry in-house, GE Aerospace reduces reliance on external vendors for certain castings, a move that could shorten lead times and improve quality control.
For Fenico, the change in ownership provides access to GE Aerospace’s engineering resources and process standards, potentially expanding its technical scope beyond traditional industrial markets. The company will continue operating at its current site, with existing management expected to remain during the transition. Financial terms beyond the purchase price were not disclosed.
The combined entity is positioned to strengthen GE Aerospace’s vertical integration in casting technology, a niche area where supply constraints have been a recurring industry challenge. Over the next several quarters, the focus will be on aligning Fenico’s production schedules with GE Aerospace’s engine programs while preserving its commercial customer base. The deal is expected to close by the end of the year, subject to regulatory approvals.