Arlington Sells Tex-Tech to Michelin, Spinning Out FMI Industries

Arlington Capital Partners has agreed to sell Tex-Tech Industries to Michelin and will simultaneously spin out FMI Industries as a separate Arlington portfolio company.

Tex-Tech Industries develops and manufactures specialty textiles and engineered materials used in aerospace, defense, medical and industrial applications where components must perform under extreme conditions. The company traces its roots to 1904, and its headquarters are located near Winston-Salem in Kernersville, North Carolina.

Tex-Tech’s products include thermal protection systems used for space vehicle insulation, coated and laminated fabrics used for sealing and protective barriers, and woven and non-woven textiles used in applications such as aircraft seating fire-blocking materials and burn-resistant structures. The company’s owned brands include CarbonX, MatrixFR, OASIS, CoreFX, Panotex, HiFlex, and HiFlex Advantage.

Arlington Capital acquired Tex-Tech in August 2017 from ShoreView Industries. During its ownership of Tex‑Tech, Arlington executed a series of add‑on acquisitions, beginning with the 2019 purchase of Highland Industries’ coating, laminating and U.S. defense‑related operations, which were rebranded as Tex Tech Coatings and integrated into the Tex‑Tech platform, followed by the 2023 acquisition of the operating assets of SGL Carbon’s Gardena, California facility to expand composite and high‑temperature materials capabilities. In 2025, Tex Tech acquired Fiber Materials from Spirit AeroSystems.

“Arlington has been a true strategic partner and together we have positioned the company for continued success,” said Justin Barnett, the president of Tex-Tech. “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.”

FMI Industries will now operate as a separate platform comprised of two Tex-Tech divisions along with Fiber Materials, acquired from Spirit AeroSystems and the Engineered Composites division acquired from SGL Carbon. The business will be led by CEO Scott Burkhart, the former CEO of Tex-Tech. “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,” said Mr. Burkhart.

“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,” said Peter Manos, a managing partner at Arlington. “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.”

Bethesda, Maryland-based Arlington Capital invests in government-regulated industries and adjacent markets including aerospace and defense; government services; and technology, healthcare, and business services. Arlington is led by its managing partners, Matt Altman, Michael Lustbader, Peter Manos, and David Wodlinger. In February 2021, Goldman Sachs Asset Management made a non-voting minority equity investment in the firm. In January 2024, Arlington Capital held a hard cap close of its latest fund, Arlington Capital Partners VI LP, with $3.8 billion of capital. The new fund beat its $3.25 billion target, was significantly oversubscribed, and is the largest fund the firm has ever raised.

“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,” said Gordon Auduong, a managing director at Arlington. “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.”

William Blair and Harris Williams are serving as financial advisors to Tex-Tech Industries, and 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.

The transaction is expected to close in the first half of 2026.