Arvind Limited’s wholly-owned subsidiary, Arvind Advanced Materials Limited (AAML), has entered the United States technical textiles market through the acquisition of a controlling stake in U.S.-based Dalco-GFT, a manufacturer of specialised needle-punched non-woven fabrics.
The acquisition gives AAML nearly 61% ownership and management control of Dalco-GFT, while the existing shareholders will retain around 39% stake in the business. The deal values Dalco-GFT at approximately $136 million at an EV/EBITDA multiple of 7.75x based on CY2025 financials.
Dalco-GFT operates two manufacturing facilities in North and South Carolina with a combined annual production capacity of nearly 75 million pounds. The company serves sectors including automotive, industrial, construction, furniture and furnishings. Established in 1988, Dalco-GFT reported revenue of around $100 million in CY2025 with EBITDA margins of nearly 17%, return on capital employed of about 40%, and a cash conversion ratio of 95%.
AAML said the acquisition aligns with its strategy of expanding globally through value-accretive opportunities while leveraging its integrated supply chain capabilities. The company expects the transaction to strengthen its position in advanced materials and provide access to the U.S. technical textiles market, estimated at around $2.5 billion.
The acquisition is also expected to create synergies through cross-sourcing opportunities, technology integration and customer expansion. Dalco-GFT brings more than 75 active customers and a strong sole-source supplier position across several product categories.
Commenting on the acquisition, Punit Lalbhai said the transaction marks a transformational milestone for AAML and enables the company to enter the world’s largest technical textiles market through a technologically aligned and operationally strong platform.
Joey Duncan said the partnership with AAML would help strengthen operations, expand capabilities and accelerate growth and innovation for customers, while maintaining existing service standards and relationships.
AAML currently operates across three business verticals — Human Protection, Composites and Industrial Applications — serving sectors such as renewable energy, industrial filtration, mobility and protective gear. The company has reported a revenue CAGR of 23% over the past five years with margins of around 15%.
The acquisition has been financed through debt at both Dalco-GFT and AAML levels. AAML said it plans to focus on growth while gradually deleveraging over the coming years. The company added that the transaction is expected to be both margin and earnings per share accretive from the first year itself.