Arlington Sells Forged Solutions Group in Key A&D Supply Chain Deal

WASHINGTON, DC – March 02, 2026 – In a significant move underscoring the strategic value of specialized manufacturing within the global aerospace and defense (A&D) sector, Arlington Capital Partners announced today the sale of Forged Solutions Group, Inc. (“FSG”) to J.F. Lehman & Company (“JFLCO”). The transaction transfers ownership of a critical supplier of complex, precision-forged components to a private equity firm with a deep focus on the defense and maritime industries, signaling continued consolidation and investment in a supply chain still grappling with post-pandemic pressures and surging demand.

FSG, which provides mission-critical parts for commercial airliners, military aircraft engines, and space launch systems, was a strategic creation of Arlington Capital. The sale marks the culmination of a six-year investment cycle that saw Arlington build a Tier 1 industry player from the ground up to address persistent bottlenecks in the high-stakes world of aerospace forging.

Building a Market Leader from Carve-Outs

Arlington Capital Partners’ successful exit from Forged Solutions Group serves as a case study in private equity value creation within highly regulated and technically demanding industries. The firm identified a crucial market deficiency in 2019, where structural supply constraints in precision forging were leading to long lead times and unreliable service for major A&D manufacturers. Arlington's response was not to buy an existing leader, but to build one.

The process began with the acquisition of the Blaenavon forging business in the UK from Doncasters Group, which became the foundational piece of FSG. This was swiftly followed by a series of four strategic acquisitions, three of which were complex carve-out transactions. Key additions included Firth Rixson Forgings from Arconic and, later, Steel Industries and Continental Forge in 2022. These moves systematically expanded FSG’s capabilities from its European base into the United States, adding expertise in open die forgings, seamless rolled rings, and precision near-net shape aluminum components.

“With FSG, we set out to address this shortfall by building a scaled, high-performance platform capable of executing on the industry’s most mission-critical programs while delivering the reliability and responsiveness the market demanded,” said Peter Manos, a Managing Partner at Arlington Capital Partners, in a statement.

Beyond acquisitions, Arlington focused heavily on operational excellence. The firm installed a new leadership team, including second-time Arlington CEO Olivier Jarrault, and invested significantly in upgrading and expanding the company’s facilities. This strategy transformed a collection of disparate assets into an integrated powerhouse with over 850 employees across seven manufacturing sites in the U.S. and UK. “FSG exemplifies one of Arlington’s core strategies of building market-leading companies in mission-critical segments of the aerospace and defense supply chain,” added Henry Albers, a Managing Director at Arlington.

A Critical Link in a Strained Supply Chain

The sale of FSG comes at a time when the aerospace and defense supply chain remains under intense pressure. Forgings and castings have been widely cited by industry analysts as an “acute pain point,” acting as a critical choke point for both the production of new aircraft and the aftermarket servicing of existing fleets. The challenges are multifaceted, stemming from a confluence of high demand, limited capacity, and workforce shortages.

Demand is being fueled by a robust post-pandemic recovery in commercial aviation and record defense spending, which saw the U.S. Department of Defense budget reach $782 billion in 2024. This has created an enormous appetite for the durable, high-performance metal parts that FSG specializes in. However, the supply side has struggled to keep pace. Raw material lead times remain a significant hurdle, with some high-demand steel alloys taking up to 80 weeks to procure and titanium requiring around nine months. This is compounded by a skilled labor gap in the manufacturing sector and a historical reluctance among some smaller suppliers to invest in new capacity.

FSG was built to counteract these very issues. By creating a scaled platform with diverse capabilities and a focus on customer partnerships, the company established itself as a reliable source for flight-critical components. Its importance to the industrial base has not gone unnoticed. The Pentagon’s Innovation Capability and Modernization Office recently launched a “Casting & Forging Initiative,” a planned $2 billion investment over five years aimed at modernizing domestic capacity, underscoring the national security implications of a resilient forging industry.

J.F. Lehman Deepens Its Defense Manufacturing Focus

The acquisition brings Forged Solutions Group into the portfolio of J.F. Lehman & Company, an investor with a long and established track record in the A&D, government, and maritime sectors. JFLCO’s strategy centers on acquiring companies with specialized technical capabilities that are integral to the defense industrial base and partnering with management to foster growth.

The purchase of FSG is a logical and strategic extension of this approach. It follows JFLCO’s recent acquisition of Wellman Dynamics, a manufacturer of large-scale magnesium and aluminum castings for aerospace platforms. By adding FSG’s forging expertise to its portfolio, JFLCO is assembling a formidable collection of assets in the critical metals and advanced manufacturing segments of the supply chain. This vertical integration could offer significant strategic advantages, enabling greater control over production timelines and enhancing the value proposition for major OEM customers like Boeing, Airbus, and Lockheed Martin.

Industry observers will be watching closely to see how JFLCO leverages its operational expertise to guide FSG’s next phase of growth. The firm is known for pursuing add-on acquisitions and expanding manufacturing capacity to meet new program demands. For FSG, this new ownership could unlock further investment in technology, facilities, and talent.

“I am incredibly proud of the progress our team has achieved over the past six years and am grateful for Arlington’s strategic partnership,” said Olivier Jarrault, CEO of FSG. “We look forward to partnering with J.F. Lehman & Company to chart our next growth chapter and to continue delivering exceptional forging and innovation services to our customers.” While financial terms of the deal were not disclosed, industry reports from mid-2025 suggested that FSG was generating an estimated $50 million to $60 million in annual EBITDA, with market multiples for similar aerospace manufacturers potentially placing the company's valuation between $600 million and $900 million, a testament to the strategic value Arlington successfully cultivated.

The transaction, advised by Goldman Sachs and Perella Weinberg for FSG, is more than a simple change of ownership; it reflects the high-stakes environment of modern defense manufacturing, where supply chain resilience and technological superiority are paramount. As global demand for advanced aircraft and defense systems continues to climb, the role of specialized, high-performance suppliers like Forged Solutions Group will only become more critical.