Tex Tech Industries, a portfolio company of Arlington Capital Partners, has acquired the coating and laminating operations and U.S. defense-related operations of Highland Industries.
The two acquired businesses will be renamed Tex Tech Coatings and will operate as a division of Tex Tech. Together, they will supply coated and laminated products to a variety of end markets including aerospace & defense, industrial, and medical. The division is headquartered in Kernersville, NC and will be led by its existing management team, including President Scott Burkhart, VP of Finance Kelly Moore, and Director of Coatings Sales Justin Barnett.
Tex Tech, led by CEO Ciaran Lynch, was founded in 1904 and is based in Portland, ME with manufacturing facilities in Maine, Thailand, and China. The company is a manufacturer of engineered textiles, specifically needle and woven felts. The company’s products include ballistic materials for soft body armor; fire blocking, thermal, and insulation used in aircraft; high-temperature filtration applications used in the power plant, cement, and asphalt industries; and tennis felt used in tennis balls (www.textechindustries.com).
“The acquisition of Tex Tech Coatings is an extremely exciting opportunity for the company and fits squarely into our strategic roadmap of adding high value-add manufacturing capabilities,” said Mr. Lynch.
Arlington Capital Partners (ACP) acquired Tex Tech from ShoreView Industries in August 2017. “We are extremely excited to begin our partnership with Scott and the entire Tex Tech Coatings team,” said Peter Manos, a managing partner at ACP. “Acquiring coating and laminating capabilities has been Tex Tech’s top priority since our initial investment as it allows the company to vertically integrate its manufacturing processes and become an end-to-end materials science supplier. We plan to continue to augment Tex Tech’s portfolio of capabilities through both organic investments and strategic acquisitions.”
ACP invests in buyouts and recapitalizations of companies valued from $50 million to $500 million. Sectors of interest include government services and technology; aerospace and defense; healthcare; and business services and software. ACP is investing out of its fourth fund which closed in July 2016 with $700 million of capital. The firm is based in Chevy Chase, MD (www.arlingtoncap.com).
“As an industry leader for decades, Tex Tech Coatings possesses proprietary and difficult-to-replicate manufacturing processes and entrenched customer relationships that span over 30 years,” said Erica Son, a vice president at ACP. “Going forward, we are very excited to enhance these strong customer relationships through the combination of Tex Tech’s world-class R&D capabilities and Tex Tech Coatings’ differentiated manufacturing processes and new development pipeline.”
Highland Industries is a manufacturer of textiles and composite materials used in the automotive, military, industrial, aerospace, and medical sectors. The company is owned by Key Safety Systems, a subsidiary of Chinese automotive conglomerate Ningbo Joyson Electronic. Key Safety Systems acquired Highland Industries in 2018 from global airbag manufacturer Takata through a bankruptcy proceeding. Highland Industries is headquartered in Greensboro, NC (www.highlandindustries.com).
© 2019 Private Equity Professional | May 3, 2019