Arlington Capital Partners, a Washington, D.C.-area private investment firm specializing in government-regulated industries, announced it has entered into a definitive agreement to sell Tex-Tech Industries to Michelin (Euronext Paris: ML).
Headquartered in Kernersville, North Carolina, Tex-Tech is a leading developer and manufacturer of proprietary, highly-engineered solutions serving aerospace, space and defense and specialty industrial end markets.
Simultaneously with the sale, FMI Industries Inc., which is comprised of two divisions of Tex-Tech, the recently acquired Fiber Materials, Inc. out of Spirit AeroSystems and the Engineered Composites division out of SGL Carbon, will be spun out and established as an independent Arlington portfolio company.
FMI is a leader in reinforced composites, with a focus on Carbon / Carbon, Rayon / Carbon and related composites for applications in the defense, space and aerospace end markets.
FMI will be led by Scott Burkhart, former CEO of Tex-Tech Industries.
Peter Manos, a managing partner at Arlington, said, “During our partnership, Tex-Tech underwent a significant transformation through sizable research and development in next generation materials and coatings, with a focus on high-growth end markets and high-cost-of-failure applications.”
Manos added, “Michelin’s global footprint makes it an excellent home for Tex-Tech to expand the penetration of its innovative products to Europe and the rest of the world. This transaction exemplifies Arlington’s ability to accelerate growth through deep expertise in regulated industries and to build businesses of strategic value.”
Justin Barnett, President of Tex-Tech Industries, said, “Michelin shares our R&D-focused philosophy and will help us further cement our industry-leading technical leadership.”
Closing of the transaction is expected in the first half of 2026 and is subject to customary regulatory approvals and closing conditions.
William Blair and Harris Williams are serving as financial advisors to Tex-Tech, and Sheppard Mullin Richter & Hampton LLP and Morrison Foerster LLP are serving as legal advisors to Tex-Tech and Arlington.
Gibson, Dunn & Crutcher LLP and DLA Piper LLP are serving as legal advisors to Michelin.
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