Key Takeaways
- • Portfolio Consolidation: J.F. Lehman realigned Custom Alloy Corporation under Forged Solutions Group following FSG's March 2026 acquisition from Arlington Capital Partners, consolidating two defense-focused manufacturers within its portfolio.
- • Strategic Defense Industrial Positioning: The acquisition strengthens FSG's exposure to the U.S. Navy's nuclear submarine programs, particularly the Columbia-class and Virginia-class submarine builds, where Custom Alloy holds sole-source manufacturer status for Main Seawater Fittings on Columbia-class vessels.
- • Rare Certifications and Supply Chain Scarcity: Custom Alloy holds Level 1 qualification from the U.S. Navy as both a forging and fitting manufacturer—one of only three companies nationally with dual designations—creating a defensible competitive moat in a supply chain facing acute capacity constraints.
- • Complementary Capabilities: FSG's expertise in aerospace forgings (aeroengine discs, shafts, airframe components) combines with Custom Alloy's vertically integrated nuclear-qualified forgings and seamless/welded pipe fittings across 450,000 square feet of manufacturing capacity with 190+ employees.
- • Defense Industrial Base Tailwinds: Congress and the Department of the Navy have flagged bottlenecks among specialized manufacturers of critical forgings and fittings; simultaneous Columbia-class and Virginia-class submarine construction plus AUKUS partnership demand create long-term visibility for qualified suppliers.
Summary
Forged Solutions Group, a J.F. Lehman & Company portfolio company focused on high-specification forgings for aerospace, defense, and space markets, has acquired Custom Alloy Corporation. This transaction represents a portfolio reallocation within J.F. Lehman's holdings, following FSG's own acquisition from Arlington Capital Partners in March 2026. Custom Alloy, which Trident Maritime Systems (another J.F. Lehman portfolio company) acquired through bankruptcy in 2023, is now consolidated under FSG ownership.
The combination unites two complementary manufacturers within the defense industrial base. Forged Solutions Group specializes in rolled ring, closed-die, open-die, and extrusion forging processes, producing aeroengine discs, structural airframe components, and space-launch hardware from nickel, titanium, steel, and aluminum alloys. Custom Alloy operates as a vertically integrated manufacturer of open- and closed-die forgings and seamless and welded pipe fittings, working across more than 170 alloys and handling the full manufacturing process from conversion and machining to heat treatment and testing. Custom Alloy maintains four manufacturing facilities totaling approximately 450,000 square feet with a workforce exceeding 190 employees near Allentown, New Jersey.
The strategic value of this acquisition centers on Custom Alloy's exceptional qualification standing and sole-source positioning in U.S. Navy submarine programs. Custom Alloy holds Level 1 certification from the U.S. Navy as both a forging manufacturer and fitting manufacturer—a designation held by only three companies nationally. The company serves as the sole-source manufacturer for Columbia-class Main Seawater Fittings and is dual-sourced for Virginia-class Main Seawater Fittings, positioning it across critical subsurface and surface naval programs. This rare dual certification and protected supply position create significant barriers to entry for competitors.
The timing of this acquisition reflects structural tailwinds in U.S. defense spending. The Navy is simultaneously executing Columbia-class ballistic missile submarine and Virginia-class attack submarine construction programs, while the AUKUS partnership with the United Kingdom and Australia is expected to drive sustained demand for nuclear-qualified submarine components. Congress and the Department of the Navy have repeatedly highlighted manufacturing bottlenecks among specialized producers of critical forgings, castings, and fittings—constraints that enhance the value of qualified suppliers. According to Olivier Jarrault, FSG CEO, the combination "further enhances FSG's reputation as a world-class provider of high-specification forgings and presents opportunities to cross leverage forging process IP across both companies to further optimize operational capacity." Alex Harman, managing partner at J.F. Lehman, characterized the acquisition as strengthening FSG's platform with "attractive U.S. nuclear navy exposure" while positioning the combined entity to support fleet modernization efforts and the renewed prioritization of the shipbuilding supply chain.
The combination unites two complementary manufacturers within the defense industrial base. Forged Solutions Group specializes in rolled ring, closed-die, open-die, and extrusion forging processes, producing aeroengine discs, structural airframe components, and space-launch hardware from nickel, titanium, steel, and aluminum alloys. Custom Alloy operates as a vertically integrated manufacturer of open- and closed-die forgings and seamless and welded pipe fittings, working across more than 170 alloys and handling the full manufacturing process from conversion and machining to heat treatment and testing. Custom Alloy maintains four manufacturing facilities totaling approximately 450,000 square feet with a workforce exceeding 190 employees near Allentown, New Jersey.
The strategic value of this acquisition centers on Custom Alloy's exceptional qualification standing and sole-source positioning in U.S. Navy submarine programs. Custom Alloy holds Level 1 certification from the U.S. Navy as both a forging manufacturer and fitting manufacturer—a designation held by only three companies nationally. The company serves as the sole-source manufacturer for Columbia-class Main Seawater Fittings and is dual-sourced for Virginia-class Main Seawater Fittings, positioning it across critical subsurface and surface naval programs. This rare dual certification and protected supply position create significant barriers to entry for competitors.
The timing of this acquisition reflects structural tailwinds in U.S. defense spending. The Navy is simultaneously executing Columbia-class ballistic missile submarine and Virginia-class attack submarine construction programs, while the AUKUS partnership with the United Kingdom and Australia is expected to drive sustained demand for nuclear-qualified submarine components. Congress and the Department of the Navy have repeatedly highlighted manufacturing bottlenecks among specialized producers of critical forgings, castings, and fittings—constraints that enhance the value of qualified suppliers. According to Olivier Jarrault, FSG CEO, the combination "further enhances FSG's reputation as a world-class provider of high-specification forgings and presents opportunities to cross leverage forging process IP across both companies to further optimize operational capacity." Alex Harman, managing partner at J.F. Lehman, characterized the acquisition as strengthening FSG's platform with "attractive U.S. nuclear navy exposure" while positioning the combined entity to support fleet modernization efforts and the renewed prioritization of the shipbuilding supply chain.
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