Updates on Acquisition by Arvind Advanced Materials Limited
ARVIND · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
On the reaction day the stock moved 13.6 pts more than Nifty Microcap 250 and 14.9 pts more than its Garments & Apparels peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
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Arvind Advanced Materials Limited (AAML), a wholly owned subsidiary of Arvind Ltd, has acquired a ~61% controlling stake in US-based Dalco-GFT, a manufacturer of specialized needle-punched non-woven technical textiles. Dalco-GFT reported CY25 revenue of ~$100 million with ~17% EBITDA margin and ~40% ROCE. The acquisition is valued at $136 million at 7.75x EV/EBITDA. The deal is both margin and EPS accretive from year one and will be financed through debt at both Dalco-GFT and AAML levels. AAML plans to acquire the remaining stake from rollover shareholders over the next four years.
Positive for shareholders as the acquisition accelerates AAML's global expansion into the US market, is immediately accretive to earnings, and adds scale with $100M revenue and 40% ROCE. The debt-financed deal keeps leverage within acceptable bounds with a planned deleveraging path.