New Ownership At Hartzell Raised Prices Within One Month

Shortly after buying Hartzell Aviation, new owner Arcline Investment Management has increased prices for parts across the board, in some cases by more than double. Arcline, a Nashville-based private equity firm, took over Hartzell in mid-November and published a new price list on Dec. 8 with some dramatic price increases. For instance, a Sky-Tec starter that used to sell for $484 without a core requirement now sells for $1,295 with a return core required, according to one shop. A propeller blade that cost $7,284 before the acquisition is now $10,964, a 51% increase. Maintenance shops have no option but to pass the increases on to customers, and some said they were concerned that competitors McCauley and MT would follow suit with price increases of their own. Hartzell did not immediately respond to AVweb phone calls and emails for comment.

Arcline was founded in 2018 by Rajeev Amara, a 1997 graduate of the Wharton School. Before launching Arcline, he spent 18 years in management positions with Golden Gate Capital, a San Francisco private equity firm that currently lists cumulative capital commitments of greater than $12 billion. Arcline is listed as holding $8.9 billion in cumulative capital commitments as of June 2023.

Hartzell Aviation represents a three-tier corporate umbrella established in July 2022 including Hartzell Propeller, Hartzell Aerospace Welding and Hartzell Engine Tech, which collectively oversaw acquired companies that built or supplied engine-related components. Acquisitions over the past few years have included lightweight aircraft starter manufacturer Sky-Tec and, in November 2023, Kelly Aero LLC, which manufactures aftermarket general aviation magnetos, replacement parts and ignition harnesses.