Washington, D.C. — January 2, 2026 — Arlington Capital Partners, a private investment firm located in the Washington, D.C. area specializing in government-regulated sectors, has officially announced a definitive agreement to sell Tex-Tech Industries to Michelin.
Tex-Tech, based in Kernersville, North Carolina, is recognized as a leading developer and manufacturer of proprietary, high-performance solutions tailored for aerospace, space & defense, and specialized industrial markets. The company produces products designed to endure extreme conditions, supporting applications where optimum performance is critical and the cost of failure is considerably high.
In conjunction with this sale, FMI Industries Inc. will emerge as an independent Arlington portfolio company. This entity will consist of two divisions from Tex-Tech: the recently acquired Fiber Materials, Inc. from Spirit AeroSystems and the Engineered Composites division from SGL Carbon. FMI focuses on reinforced composites, including Carbon/Carbon and Rayon/Carbon, servicing the defense, aerospace, and space markets. Scott Burkhart, formerly the CEO of Tex-Tech Industries, will lead FMI going forward.
Peter Manos, a Managing Partner at Arlington, stated, “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, expressed, “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.”
The transaction is expected to close in the first half of 2026, pending standard regulatory approvals and closing conditions.
William Blair and Harris Williams are serving as financial advisors to Tex-Tech Industries, while Sheppard Mullin Richter & Hampton LLP and Morrison Foerster LLP provide legal advice to Tex-Tech and Arlington. Michelin has engaged Gibson, Dunn & Crutcher LLP and DLA Piper LLP for legal representation.
