Arvind Advanced Materials Limited (AAML), a subsidiary of Arvind Limited, has announced the acquisition of a 61% controlling stake in U.S.-based Dalco-GFT for $136 million. This strategic move marks AAML’s entry into the world’s largest technical textile market. Dalco-GFT, a leader in needle-punched non-woven fabrics, generated $100 million in revenue in CY25 with an EBITDA margin of 17%, promising immediate accretion to Arvind’s margins and earnings per share.
Strategic Entry into the US Market
Arvind Limited continues to scale its advanced materials platform through its subsidiary, Arvind Advanced Materials Limited (AAML). The acquisition of a 61% stake in Dalco-GFT provides a critical manufacturing footprint in the United States, targeting the $2.5 billion addressable market for needle-punched non-woven fabrics. The deal includes a defined pathway to reach 100% ownership within the next four years.
Financial and Operational Highlights
Dalco-GFT is a proven performer with four decades of operational history. In CY25, the company reported revenue of ~$100 million, a 17%+ EBITDA margin, and a robust 40% ROCE. With two automated manufacturing facilities in North and South Carolina and an annual capacity of 75 million pounds, the firm maintains an 88% sole-source position among its 75+ active customers.
Synergy and Growth Drivers
The transaction is expected to be margin and EPS accretive from year one. AAML aims to leverage its deep expertise in filtration and non-woven technologies to drive growth across new segments, including Automotive, Furniture & Furnishing, and Construction. By combining AAML’s global manufacturing capabilities with Dalco-GFT’s established US market presence, the company plans to pursue selective cross-sourcing and supply-chain optimization, further strengthening its competitive advantage.
Management Continuity and Capital Strategy
Dalco-GFT’s existing leadership, including CEO Joey Duncan, will continue to guide the business, ensuring continuity in customer service and operational execution. The acquisition is currently financed through a mix of non-recourse debt at the US entity and parent-level debt. Looking ahead, Arvind Limited remains committed to a disciplined capital structure with a clear strategy focused on deleveraging over the coming years through the combined entity’s cash flow generation.
Source: BSE
