Transcript of AAML''s Acquisition investor call

Arvind Ltd's subsidiary AAML (Arvind Advanced Materials Limited) has acquired 61% stake in Dalco-GFT, a US-based needle punch nonwoven manufacturer, at 7.75x CY2025 EBITDA (~$136 million valuation). Dalco-GFT has 2 plants in South Carolina and North Carolina with 75 million pound capacity running at 85% utilization. The company serves automotive (noise/vibration reduction) and geotextiles segments, with 88% sole-source positions and contracts lasting 5-6 years. Historical growth was 10% with 17% EBITDA margins and 40% ROCE. Management targets mid-teens growth going forward by investing $5 million annually in new production lines (can add 3 more in existing facilities). Deal is margin and EPS accretive, funded by $50 million debt at US entity level (5.5% cost) and $60 million at AAML level (6% cost). Dalco PAT is ~INR 100 crore for CY25. Existing management retained with 39% stake, with full acquisition planned in 4 years.