Bengaluru: Arvind Ltd's wholly owned subsidiary Arvind Advanced Materials Ltd (AAML) has acquired a nearly 61% controlling stake in US-based Dalco-GFT, marking the textile group's entry into the American technical textiles market.
Deal Details
The deal values Dalco-GFT at an enterprise value-to-Ebitda multiple of 7.75x for the calendar year 2025, translating to a valuation of about $136 million, according to a company statement issued on Tuesday.
About Dalco-GFT
Dalco-GFT manufactures specialised needle-punched non-woven fabrics used across sectors including automotive, industrial, construction, furniture and furnishings. The company reported revenue of about $100 million in CY25, with an Ebitda margin of around 17% and return on capital employed of roughly 40%.
Strategic Significance
Arvind said the acquisition is expected to strengthen its global advanced materials business and expand its presence in the US, which it described as the world's largest technical textile market.
“The acquisition of Dalco-GFT marks a transformational milestone in AAML’s growth journey,” Arvind vice chairman Punit Lalbhai said. “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.”
AAML said the acquisition would help it access a total addressable market of about $2.5 billion in the US across segments such as industrial applications, filtration, mobility and protective materials.
Operational Highlights
Dalco-GFT operates manufacturing facilities in North and South Carolina with a combined annual production capacity of around 75 million pounds. Arvind said the acquisition would also expand its customer base through Dalco-GFT’s more than 75 active customers and its “88% sole-source position”.
Financial Impact
The Ahmedabad-based company added that the transaction is margin- and earnings-per-share-accretive from the first year itself. The acquisition has been financed through debt at Dalco-GFT and AAML levels. Arvind said it plans to pursue deleveraging over the next few years while continuing to invest in growth.
