Arlington Capital Partners (Arlington), a Washington, DC-area private investment firm specialising in government-regulated industries, has entered into a definitive agreement to sell Tex-Tech Industries (Tex-Tech) to Michelin.
Headquartered in Kernersville, North Carolina, Tex-Tech is a developer and manufacturer of proprietary, highly-engineered solutions serving aerospace, space & defence, and specialty industrial end markets. Simultaneously with the sale, FMI Industries Inc (FMI), 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 defence, space, and aerospace end markets. It will be led by Scott Burkhart, former CEO of Tex-Tech Industries.
Closing of the transaction is expected in 1H 2026 and is subject to customary regulatory approvals and closing conditions.
William Blair and Harris Williams are serving as financial advisors to Tex-Tech Industries, 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.
