Arvind-arm acquires Dalco-GFT for $136 million, confirms CNBC-TV18 Newsbreak

In confirmation of a CNBC-TV18 newsbreak from earlier this week, Arvind Advanced Materials Ltd. (AAML), a wholly owned subsidiary of Arvind Ltd., has acquired a 61% controlling stake in Dalco-GFT, a US-based manufacturer of specialized needlepunch nonwoven fabrics, the company announced on Wednesday.

Deal Contours

The enterprise value of the transaction is $136 million, valuing it at 7.75 times calendar year 2025 Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) on an adjusted basis. AAML also has a defined pathway to acquire the remaining 39% stake over the next four years.

According to Arvind, the deal is margin and Earnings Per Share (EPS) accretive from the first year itself.

CNBC-TV18 was the first to report that Arvind was in advanced discussions to acquire a majority stake in a US-based nonwovens manufacturer, with the deal value expected in the range of $125-140 million and the acquisition to be routed through Arvind Advanced Materials.

According to the company statement, the acquisition is financed through a combination of approximately $50 million in non-recourse debt raised at the US entity level and approximately $60 million in debt raised at AAML.

Dalco-GFT's existing management team, led by Chief Executive Officer Joey Duncan, will continue to lead the business. The deal marks AAML's foray into the US market, which will also be its first manufacturing presence outside India.

What Is Dalco-GFT?

Established in 1988, Dalco-GFT has a four-decade track record in specialized needlepunch nonwoven fabrics. The company operates 2 manufacturing plants in North and South Carolina with a combined annual production capacity of 75 million pounds and 170 employees.

In CY25, Dalco-GFT reported revenue of approximately $100 million, EBITDA margins of over 17%, return on capital employed of approximately 40%, and a cash conversion ratio of over 95%. It serves over 75 active customers across four primary end-markets: mobility, geotextiles, industrial, and flooring and furniture, with approximately 88% sole-source positions across its customer base.

Nearly two-thirds of Dalco-GFT's topline comes from the mobility business (68%), with geotextiles, industrials and flooring & furniture contributing 15%, 9% and 8% respectively.

Benefits For Arvind Unit

For AAML, the acquisition opens access to an estimated $2.5 billion North American addressable market across mobility, geotextiles, industrial, and flooring and furniture applications. The deal adds 3 new sectors to AAML’s existing profile, along with 75 active accounts. The sole-source positioning of Dalco-GFT also provides high revenue visibility.

This will also become AAML's fourth business alongside its existing Human Protection, Composites, and Industrials businesses.