Arlington Capital Partners, a Washington, D.C.-area private investment firm specializing in government-regulated industries, today announced that it has entered into a definitive agreement to sell Tex-Tech Industries to Michelin. Headquartered in Kernersville, North Carolina, Tex-Tech is a leading developer and manufacturer of proprietary, highly-engineered solutions serving aerospace, space & defense and specialty industrial end markets. Its products are purpose-built to withstand extreme environments and support applications where performance is critical and the cost of failure is high.

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 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. 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, “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.”

Gordon Auduong, a Managing Director at Arlington, added, “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.”

Scott Burkhart, Chief Executive Officer of FMI, said, “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.”

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, 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.