German carbon and glass fibers maker SGL Carbon SE has sold one of its U.S. operations to Tex Tech Industries Inc., a textile laminating and materials business backed by private equity firm Arlington Capital Partners LP.
Tex Tech of Kernersville, N.C., bought the operating assets of SGL's Gardena, Calif., business, including some assets of SGL Composites Inc., which was once Hitco Carbon Composites Inc.
SGL said it sold the Los Angeles-area business as part of the parent company's realignment. SGL will retain ownership of the property and lease it to Tex Tech, but the Feb. 16 deal includes the site's plant, machinery and customer contracts.
In a statement, SGL said it will continue to serve other customers from its site in Arkadelphia, Ark., "which is being expanded as a hub for the manufacturing of composite components, in particular for large-volume orders from North American automotive customers."
In addition to that site and its U.S. headquarters in Charlotte, N.C., SGL has operations in Moses Lake, Wash.; Valencia, Calif.; Strongsville, Ohio; St. Marys and Sinking Spring, Pa.; and Morgantown, W.Va.
SGL Carbon SE, based in Wiesbaden, Germany, has 30 sites globally and 4,700 employees. It also makes materials and products for the solar and wind energy industries, and for manufacturers of semiconductors, LEDs, and lithium-ion batteries.
The company said it generated global 2021 sales of more than 1 billion euros ($1.06 billion).
The Gardena operation provides materials and components for the automotive, energy, aerospace and industrial sectors. Peter Manos, an Arlington Capital managing partner, called the purchase "a highly strategic addition to Tex Tech."
"The acquisition expands Tex Tech's product offerings into the fastest-growing programs in space, defense and commercial aerospace," he said in a Feb. 17 news release.
Tex Tech was launched in 1904 making needle-punched non-woven textiles. Today it works with woven and non-woven fabrics, coatings and laminations.
The company has sales, manufacturing, and research and development sites across North America and Europe.
Tex Tech became part of Washington-based Arlington Capital in 2017. In 2019, Tex Tech acquired Cheraw, S.C.-based Highland Industries Inc.'s coating, laminating and defense business in Kernersville and renamed the new division Tex Tech Coatings LLC.
Arlington Capital, which is incorporated in Chevy Chase, Md., concentrates on middle-market investments in growth industries including health care, aerospace, defense, software, government services and technology and business services.