– Arlington Capital Partners, a Washington, D.C.-area private investment firm focused on government-regulated industries, has entered into a definitive agreement to sell Tex-Tech Industries to Michelin.
– Tex-Tech Industries, headquartered in Kernersville, North Carolina, is a leading developer and manufacturer of proprietary, highly engineered solutions serving aerospace, space & defense, and specialty industrial end markets.
– Concurrent with the sale, FMI Industries Inc., comprised of the Fiber Materials, Inc. business acquired from Spirit AeroSystems and the Engineered Composites division acquired from SGL Carbon, will be spun out as an independent Arlington portfolio company.
– FMI Industries is a leader in reinforced composites, specializing in Carbon/Carbon, Rayon/Carbon, and related composite materials for defense, space, and aerospace applications.
– FMI will be led by Scott Burkhart, former Chief Executive Officer of Tex-Tech Industries.
– Peter Manos, Managing Partner at Arlington Capital Partners, stated that Tex-Tech underwent a significant transformation driven by substantial investment in R&D for next-generation materials and coatings focused on high-growth, high-cost-of-failure applications.
– Justin Barnett, President of Tex-Tech Industries, noted that Arlington acted as a strategic partner and that Tex-Tech achieved double-digit top-line growth over the past four years through innovation in advanced technical materials, including Thermal Protection Systems for space rocket insulation.
– Gordon Auduong, Managing Director at Arlington Capital Partners, emphasized Tex-Tech’s innovation, manufacturing excellence, and strong commitment to customer success as key drivers of the Company’s transformation.
– Scott Burkhart, Chief Executive Officer of FMI Industries, stated his intention to build on Tex-Tech’s momentum and position FMI as a leading provider of advanced composite materials for defense, space, and aerospace customers.
– The transaction is expected to close in the first half of 2026, subject to customary regulatory approvals and closing conditions.
– William Blair and Harris Williams are serving as financial advisors to Tex-Tech Industries.
– Sheppard Mullin & Hampton LLP and Morrison Foerster LLP are acting as legal advisors to Tex-Tech Industries and Arlington Capital Partners.
– Gibson Dunn & Crutcher LLP and DLA Piper LLP are serving as legal advisors to Michelin.
