Arvind Advanced Materials Limited (AAML), a wholly owned subsidiary of Arvind Limited has acquired a 61% stake in Dalco-GFT, a US-based manufacturer of specialized needle-punched nonwoven specialty fabrics.
Dalco-GFT was established in 1988 and has a proven track record of four decades. It delivers specialized needle-punched non-woven tech-textile solutions across sectors including automotive, industrial, construction, furniture and furnishing.
The company has two manufacturing units in both, North and South Carolina, USA with a combined annual capacity of producing 75 million pounds.
Dalco-GFT reported a top line CAGR of 10% in the past six years and margin improvement of 100 bps.
The stake in Dalco-GFT comes with management control and is valued at 7.75x EV/EBITDA (CY25) amounting to $136 million. AAML intends to acquire the remaining stake from rollover shareholders in four years.
This deal is both margin and EPS accretive from year one and the acquisition has been financed through debt at Dalco-GFT & AAML levels.
The acquisition is expected to accelerate AAML’s global footprint and reduce supply chain risk while unlocking the following strategic synergies:
AAML operates a scaled advanced materials platform with supply leadership positions across many critical sectors such as, protective gear, renewable energy, mass mobility, industrial filters and belting.
It currently operates three distinct verticals i.e., Human Protection, Composites, and Industrial Applications and has achieved revenue CAGR of 23% over the past five years with a consistent margin of 15%.
Commenting on the acquisition, Mr Punit Lalbhai, Vice Chairman of Arvind Limited, said, “The acquisition of Dalco-GFT marks a transformational milestone in AAML’s growth journey. Through this transaction, we are entering the world’s largest technical textile market—the United States—through a platform that is both technologically aligned and operationally strong.”
“The continued participation of the existing shareholders, who will retain a 39% stake, reflects strong alignment and confidence in the future of the business. This acquisition is highly synergistic and will accelerate our growth ambitions of 18–20% through cross-sourcing and technology integration,” he added.
