Arlington Capital Partners announced it has entered into a definitive agreement to sell Tex-Tech Industries, a developer and manufacturer of highly engineered materials solutions for aerospace, space and defense, and specialty industrial markets, to Michelin. The transaction is expected to close in the first half of 2026, subject to customary regulatory approvals and closing conditions.
Tex-Tech, headquartered in Kernersville, North Carolina, produces proprietary materials designed for extreme environments and high-cost-of-failure applications, Arlington said. The firm framed the sale as the culmination of a transformation effort centered on research and development in next-generation materials and coatings and an increased focus on faster-growing end markets.
At the same time as the sale to Michelin, Arlington said it will spin out FMI Industries, Inc. as an independent portfolio company and new platform investment. FMI will comprise two divisions of Tex-Tech: Fiber Materials, Inc., which Tex-Tech recently acquired from Spirit AeroSystems, and the Engineered Composites division acquired from SGL Carbon. Arlington described FMI as a reinforced composites business focused on carbon/carbon, rayon/carbon and related composites for defense, space, and aerospace applications.
Arlington said FMI will be led by Scott Burkhart, former CEO of Tex-Tech Industries, while Justin Barnett will continue as president of Tex-Tech. Arlington executives said Michelin’s global footprint should help Tex-Tech expand internationally, particularly in Europe, while the firm intends to continue backing FMI’s growth as a standalone composites platform.
William Blair and Harris Williams are serving as financial advisors to Tex-Tech Industries. Sheppard Mullin Richter & Hampton and Morrison Foerster are serving as legal advisors to Tex-Tech and Arlington. Gibson, Dunn & Crutcher and DLA Piper are serving as legal advisors to Michelin, Arlington said.
KEY QUOTES
“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. 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.”
Peter Manos, Managing Partner, Arlington Capital Partners
“Arlington has been a true strategic partner and together we have positioned the Company for continued success. It has been personally rewarding growing the Company’s top line at a double-digit rate over the last four years by being at the forefront of innovating advanced technical materials like our cutting-edge Thermal Protection Systems for space rocket insulation. Michelin shares our R&D-focused philosophy and will help us further cement our industry leading technical leadership.”
Justin Barnett, President, Tex-Tech Industries
“Tex-Tech’s focus on innovation and manufacturing excellence, coupled with an unparalleled commitment to customer success through its differentiated development and manufacturing capabilities, have enabled its transformation into the unique business that exists today. Additionally, Arlington is excited to continue its partnership with Scott and the FMI team as we continue to build FMI and support our nation as we undergo modernization of strategically important defense platforms.”
Gordon Auduong, Managing Director, Arlington Capital Partners
“I look forward to building upon Tex-Tech’s success and carrying its momentum forward as we build FMI into the leading provider of innovative composite materials for our demanding defense, space, and aerospace customers.”
Scott Burkhart, Chief Executive Officer, FMI Industries
