Arvind Advanced Materials Limited (AAML), a wholly-owned subsidiary of Arvind Limited, has acquired a ~61% controlling stake in US-based Dalco-GFT, a manufacturer of specialized needle-punched non-woven fabrics, for approximately $136 million. This strategic acquisition, valued at 7.75x CY25 EV/EBITDA, marks Arvind's entry into the US technical textile market, the largest globally for this segment. Dalco-GFT reported a top-line of ~$100 million with a ~17% EBITDA margin and ~40% ROCE in CY25. The acquisition is expected to be margin and EPS accretive from year one. AAML plans to acquire the remaining stake from rollover shareholders within four years. The transaction is financed through debt at both Dalco-GFT and AAML levels, with a focus on deleveraging over the next few years. This move aligns with Arvind's strategy to pursue value-accretive opportunities, enhance resilience, and expand partnerships. The acquisition is anticipated to accelerate AAML's global footprint, reduce supply chain risks, and unlock strategic synergies, including access to a $2.5 billion TAM in the US, leveraging Dalco-GFT's manufacturing facilities and established customer base. Mr. Punit Lalbhai, Vice Chairman of Arvind Limited, stated that the acquisition is a transformational milestone for AAML's growth journey, aiming for an 18-20% growth through cross-sourcing and technology integration. Arvind Limited will host an investor call on May 07, 2026, at 14:00 IST to discuss the acquisition. Key management personnel, including Mr. Punit Lalbhai and Mr. Gurpreet Singh Bhatia (CEO and President of AAML), will attend the call.
