Arcline Investment Management Acquires Hydraulics International

Arcline Investment Management, a growth-oriented private equity firm, has announced its definitive agreement on February 24, 2026 to acquire Hydraulics International, Inc. (HII), a prominent provider of ground support equipment, mobile test systems, and specialized pumps for aerospace, defense, and industrial applications. Founded in 1976, HII specializes in the design, manufacture, and aftermarket support of mission-critical hydraulic, pneumatic, and electro-mechanical systems that are essential for aircraft maintenance, testing, and flight-line operations.

The acquisition is significant as it positions Arcline to leverage HII’s strong engineering foundation and reputation for reliability in the aerospace and defense sectors. Arcline’s investment strategy focuses on building market-leading industrial platforms, and HII’s established customer base includes U.S. and allied defense forces, prime contractors, and government agencies.

Bahman Seifollahi, Chief Executive Officer of HII, expressed pride in the company’s achievements over the past 50 years and emphasized the excitement surrounding the partnership with Arcline. “We firmly believe their growth-oriented approach and industry expertise make them a tremendous partner for HII’s next phase,” he stated.

RBC Capital Markets acted as the financial advisor to Arcline for this transaction, while Guggenheim Securities and Lazard served as financial advisors to Hydraulics International. The financial terms of the deal have not been disclosed.

Arcline Investment Management manages over $20 billion in assets and aims to create the next generation of Industrial Compounders—companies designed to grow earnings consistently over decades. The acquisition of HII is expected to enhance Arcline’s portfolio by providing cross-selling opportunities and expanding HII’s product offerings into new markets.

As the aerospace and defense industries continue to evolve, this acquisition may strengthen HII’s market position and competitive edge. The integration of advanced technologies into HII’s existing product lines and the development of new offerings are anticipated outcomes of this partnership.

Looking ahead, both companies will focus on integrating operations and enhancing customer relationships. The acquisition is subject to regulatory approvals, and both parties are optimistic about the future growth potential.