Michelin Acquires Tex-Tech in Major Advanced Materials Push

WASHINGTON, DC – January 02, 2026 – In a significant move that underscores its strategic diversification beyond the tire industry, French conglomerate Michelin has entered into a definitive agreement to acquire Tex-Tech Industries from private investment firm Arlington Capital Partners. The deal simultaneously triggers the creation of a new, independent entity, FMI Industries Inc., which will be spun out of Tex-Tech's composite materials divisions and remain under Arlington's ownership.

The complex transaction marks a major milestone in Michelin's long-term strategy to become a dominant force in high-performance, polymer-based materials. For Arlington Capital Partners, it represents a successful and sophisticated exit, allowing the firm to realize gains from its investment in Tex-Tech while launching a new, highly focused company poised to serve critical national security and aerospace markets.

Michelin's Strategic Pivot Beyond Tires

The acquisition of Tex-Tech is a cornerstone of the Michelin in Motion 2030 strategic plan, an ambitious initiative designed to leverage the company's century-old expertise in materials science into new, high-growth sectors. Michelin has publicly stated its goal for non-tire businesses to constitute up to 30% of total sales by the end of the decade. This deal, along with other recent acquisitions, significantly bolsters its Polymer Composite Solutions business.

Tex-Tech, headquartered in Kernersville, North Carolina, is a leading developer of proprietary, highly-engineered materials designed for extreme environments. Its products are purpose-built for applications where performance is non-negotiable and the cost of failure is exceptionally high, including aerospace, space, defense, and specialty industrial markets. Key technologies include cutting-edge Thermal Protection Systems (TPS) for space rocket insulation, fuselage burn-resistant aircraft materials, and fire-retardant textiles for aircraft seating.

This focus on innovation and high-stakes applications made Tex-Tech an ideal target for Michelin. “Arlington has been a true strategic partner and together we have positioned the Company for continued success," said Justin Barnett, President of Tex-Tech Industries. "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... Michelin shares our R&D-focused philosophy and will help us further cement our industry-leading technical leadership.”

Michelin's global reach is expected to provide Tex-Tech with a powerful platform for international expansion. Peter Manos, a Managing Partner at Arlington, commented on the synergy, stating, “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.”

Arlington's Dual Play: A Strategic Exit and a New Beginning

For Arlington Capital Partners, a Washington, D.C.-area firm specializing in government-regulated industries, the transaction is more than a simple sale. It exemplifies a "dual play" strategy that showcases the firm's deep expertise in creating value within complex markets. During its ownership, Arlington guided Tex-Tech through a period of intense growth and innovation.

“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,” Manos explained. “This transaction exemplifies Arlington’s ability to accelerate growth through deep expertise in regulated industries and to build businesses of strategic value.”

While divesting the core of Tex-Tech to Michelin, Arlington is strategically retaining and spinning off its most defense-critical assets into a new, independent portfolio company: FMI Industries Inc. This new entity is comprised of two former Tex-Tech divisions: Fiber Materials, Inc., which Arlington recently acquired from Spirit AeroSystems, and the Engineered Composites division, formerly of SGL Carbon.

Gordon Auduong, a Managing Director at Arlington, highlighted the strategic logic behind the move. “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," he said. "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.”

FMI Industries: A Focused Force in Critical Composites

The newly formed FMI Industries will be a pure-play leader in reinforced composites, specifically Carbon/Carbon (C/C) and Rayon/Carbon materials. These advanced composites are indispensable for modern defense, space, and aerospace applications due to their extraordinary strength-to-weight ratio and ability to withstand extreme temperatures.

C/C composites are critical components in systems such as ballistic missile re-entry vehicle nose cones, rocket engine nozzles, and high-performance aircraft brakes. Their ablation resistance and thermal shock durability make them essential for platforms operating at the edge of atmospheric and space flight. By consolidating these capabilities into FMI, Arlington is creating a specialized powerhouse dedicated to serving the nation's most demanding technological programs.

Leading this new venture will be Scott Burkhart, the former CEO of Tex-Tech Industries, ensuring leadership continuity and deep domain expertise. “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,” Burkhart stated.

Navigating a Complex Regulatory Gauntlet

The transaction is slated to close in the first half of 2026, a timeline that reflects the complex regulatory approvals required. Given that Tex-Tech's materials are integral to U.S. defense and aerospace systems, the acquisition by a foreign-owned entity—Michelin is a French company—will almost certainly trigger a thorough review by the Committee on Foreign Investment in the United States (CFIUS).

CFIUS is an inter-agency committee that assesses the national security implications of foreign investments in U.S. companies. The committee has the authority to impose mitigating conditions on a deal or, in rare cases, recommend that the President block it entirely. In addition to a potential CFIUS review, the deal will be subject to standard antitrust and merger control clearances in the United States and other jurisdictions. The involvement of top-tier legal firms like Gibson Dunn and DLA Piper for Michelin, and Sheppard Mullin and Morrison Foerster for Arlington, underscores the anticipated legal and regulatory complexities of the deal. The successful navigation of these hurdles will be critical for all parties involved as they work toward the planned 2026 closing date.