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Hartzell Bought By Equity Firm

RV8JD

RV8JD

Well Known Member
I hope Jim Brown is correct, but the focus on investors rather than customers may not bode well. Arcline Investment Management is an American private equity firm.

https://www.avweb.com/aviation-news/hartzell-bought-by-equity-firm/

"Arcline Investment Management, an $8.9 billion private equity firm, has acquired Hartzell Aviation from Tailwind Technologies. The deal includes Hartzell’s two business units, the propeller business and Hartzell Engine Tech, which makes engine subsystems ranging from turbochargers to engine mounts. “Our family has been blessed to be the stewards of Hartzell Aviation for 37 years. As we look to the future, we believe Arcline fully embraces our core value – Built on Honor – and will bring the skills and resources to build on over a century of excellence and innovation,” said Jim Brown, President of Hartzell Aviation.

Arcline says it will honor the century-plus history of the storied propeller maker and embark on an unspecified growth plan. “As investors exclusively focused on Critical Suppliers to Critical Industries, Hartzell’s portfolio of flight-critical propeller and engine subsystems for a large and long-lived installed base fits perfectly with Arcline’s strategy. We are excited to partner with the Hartzell team to carry on its legacy generated over the past 100 years and facilitate the Company’s next phase of growth,” the company said in a statement."​
 
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It is rarely good for customers when private equity firms buy companies like this. Just ask the folks who use Epi pens or insulin. While not univeral, they tend to target companies the either have significant organizational issues deeply impacting the bottom line that can be easily repaired or have captive customers that cannot afford to walk away from 2X or more price hikes. I can all but promise one thing: They didn't buy it with the intent on running it the way it is run now. PE groups just don't do that, at least not with established companies.

Pay close attention to key words in PRs mission satement: "Critical parts to critical industries" & "Large, long-lived customers" & "unspecified new growth plan" If on the fence, I would buy my hartzell prop in the near term vs waiting.
 
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I think it depends. Cirrus was bought by a Chinese investment company and it went to lead the high end GA aircraft market. The flipside was Mooney and the Chinese investment company bailed after the flop of the Ovation line. But the main reason was Mooney didn't have the airplane to compete against the Cirrus designs.
 
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