In a major global expansion move, Arvind Ltd. announced that its wholly owned subsidiary, Arvind Advanced Materials Ltd. (AAML), has acquired a 61% controlling stake in US-based Dalco-GFT, a manufacturer of specialized needlepunch nonwoven fabrics, for an enterprise value of $136 million.

Key Highlights

• Arvind Advanced Materials acquired 61% stake in US-based Dalco-GFT for $136 million expansion.
• Acquisition marks Arvind’s entry into America’s largest technical textiles and nonwoven fabrics market.

The acquisition marks AAML’s strategic entry into the United States - the world’s largest technical textiles market - and also becomes the company’s first manufacturing footprint outside India. The transaction values Dalco-GFT at 7.75 times CY2025 adjusted EBITDA, with a defined roadmap for AAML to acquire the remaining 39% stake over the next four years.

Strategic Expansion Into Technical Textiles

Founded in 1988, Dalco-GFT operates two manufacturing facilities in North and South Carolina with a combined annual production capacity of nearly 75 million pounds and a workforce of approximately 170 employees. The company supplies specialized nonwoven solutions across mobility, geotextiles, industrial applications, flooring, and furniture sectors.

Dalco-GFT reported revenue of nearly $100 million in CY2025, with EBITDA margins exceeding 17%, return on capital employed of around 40%, and cash conversion above 95%, reflecting strong operational efficiency and customer stickiness. Nearly 88% of its customer relationships are sole-source contracts, providing long-term revenue visibility.

For AAML, the acquisition opens access to an estimated $2.5 billion North American addressable market and significantly expands its customer base with more than 75 active accounts. The deal also diversifies AAML’s portfolio by adding new segments including automotive, construction, and furniture applications.

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Financing Structure

According to the company, the transaction is being funded through a combination of nearly $50 million in non-recourse debt at the US entity level and around $60 million in debt raised at AAML. Arvind stated that the acquisition is expected to be margin and Earnings Per Share (EPS) accretive from the first year itself.

Industry analysts view the acquisition as part of a broader strategy by Indian manufacturers to establish overseas production capabilities amid evolving global trade dynamics and supply-chain diversification trends.

Punit Lalbhai, Vice Chairman of Arvind Ltd., said, “The acquisition of Dalco-GFT marks a transformational milestone in AAML’s growth journey. tTe transaction provides entry into the US technical textiles market through a technologically aligned and operationally strong platform."

Joey Duncan, CEO of Dalco-GFT stated, “We’re excited about what this transaction makes possible. The partnership with AAML would help strengthen operations, expand capabilities, and accelerate innovation for customers."