Ahmedabad-based textile-to-retail conglomerate Arvind Ltd, through its advanced materials arm Arvind Advance Materials Ltd (AAML), will acquire a 61% stake in North Carolina‑based technical-textile manufacturer Dalco‑GFT from private equity firm Snow Peak Capital.
The deal was valued at $136 million (Rs 1,283 crore).
The transaction valued Dalco‑GFT at an enterprise value/EBITDA multiple of 7.75x for calendar year 2025, and will mark AAML’s entry into the US technical-textiles market at scale.
PE firm Snow Peak Capital, which had acquired Dalco-GFT in 2022, will sell most of its stake through the transaction while retaining a minority holding alongside Dalco-GFT’s management team. The acquisition will be funded through debt at both the US entity and AAML levels.
Post-transaction, AAML will hold a 60.6% stake in Dalco-GFT, while Snow Peak and existing promoters will hold minority stakes. AAML also has an option to acquire full ownership over the next four years.
Dalco‑GFT manufactures specialized needle-punched non-woven fabrics and operates two manufacturing facilities in the US with a combined annual production capacity of about 75 million pounds.
Founded in 1988, Dalco‑GFT reported revenue of about $100 million in CY25 with an EBITDA margin of 17%. The company has delivered a six‑year revenue CAGR of 10%.
Meanwhile, AAML operates across three verticals: human protection, composites, and industrial applications, and has posted a five‑year revenue CAGR of 23% while maintaining margins of around 15%.
The acquisition expands AAML’s addressable market in the US to nearly $2.5 billion, adds more than 75 active customers, and increases its exposure to automotive, furniture and construction segments, it said in a statement.
The transaction will also reduce supply‑chain risks, enable cross‑sourcing, and technology integration to accelerate growth, it added.
“We are entering the world’s largest technical‑textile market through a platform that is technologically aligned and operationally strong,” said Punit Lalbhai, vice-chairman of Arvind Ltd.
InCred Capital was the exclusive advisor to the deal.
Arvind Ltd operates across textiles, apparels, advanced materials, environmental solutions, telecom and omni-channel commerce. The company is among the world’s leading fabric suppliers with integrated fibre-to-fashion capabilities for global customers.
.At the time of writing, shares of Arvind Ltd were trading at Rs 436, up around 12%.
