Arvind Limited has informed the Exchange about General Updates
ARVIND · price
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Arvind Limited announced the acquisition of Dalco-GFT through its wholly-owned subsidiary AAML. Dalco-GFT is a US-based needle-punch nonwoven company established in 1988, with 2 manufacturing units in South Carolina and North Carolina. The acquisition involves a 61% stake at 7.75x CY 2025 EBITDA valuation, valued at $136 million. Dalco-GFT has capacity of 75 million pounds at 85% utilization, with historical growth of 10%, 17% margins, and 40% return on capital. The deal is funded through debt at both AAML (~$60 million at 6%) and the US entity (~$50 million at 5.5%). Existing management retained with 39% stake. Management guided for mid-teens growth (vs historical 10%) driven by capacity expansion ($5 million capex per year for new lines) and business development in under-represented segments like geotextiles. PAT of Dalco is around INR 100 crores for CY 2025. The deal is both margin accretive and EPS accretive at consolidated level.
The acquisition provides Arvind with immediate global scale in the advanced materials space, access to $2.5 billion TAM, and technology adjacency. The CFO indicated plans to pay down the acquisition debt over the next couple of years. Consolidation starts from Q1 FY27, with ~2 months of Q1 included in Arvind's results.