Arvind Ltd Arm Acquires 61% Stake In Dalco-GFT To Enter US Technical Textiles Market
Arvind Ltd has strengthened its presence in the global technical textiles sector through the acquisition of a controlling stake in US-based Dalco-GFT by its wholly-owned subsidiary Arvind Advanced Materials Ltd (AAML).
The transaction gives AAML nearly 61 per cent ownership in Dalco-GFT and marks Arvind’s strategic entry into the US technical textiles market, one of the world’s largest and most advanced markets for high-performance materials.
Dalco-GFT specializes in needle-punched non-woven fabrics used across automotive, industrial, construction, furniture and furnishing applications. The company operates manufacturing facilities in North and South Carolina with a combined annual production capacity of nearly 75 million pounds.
According to Arvind Ltd, the acquisition values Dalco-GFT at an enterprise value-to-EBITDA multiple of 7.75x for CY2025, implying an overall valuation of around US$ 36 million.
Dalco-GFT is expected to report revenues of approximately US$ 100 million in CY2025, with EBITDA margins of around 17 per cent and return on capital employed nearing 40 per cent.
“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,” said Punit Lalbhai, Executive Director of Arvind Limited
The acquisition is expected to significantly expand AAML’s addressable market, with opportunities estimated at around US$ 2.5 billion across industrial applications, filtration, mobility and protective materials.
Arvind Ltd also highlighted Dalco-GFT’s strong customer base of over 75 active clients and its high sole-source business share of approximately 88 per cent, which provides long-term business visibility and customer stickiness.
The company stated that the acquisition is expected to be margin-accretive and earnings-per-share-accretive from the first year itself. The transaction has been financed through debt at both AAML and Dalco-GFT levels, with the company planning to focus on deleveraging while continuing investments in future growth initiatives.
