Arvind Advanced Materials Limited, a wholly owned subsidiary of Arvind, announced the acquisition of nearly 61 percent stake in Dalco-GFT, a U.S. manufacturer of needle-punched non-woven specialty fabrics.
The deal was valued at $136 million, according to statements released by the Naroda Road-headquartered group on Tuesday. The move itself comes as the textile-to-retail conglomerate works to leverage its supply chain and build resilience as global trade shifts. While the deal secures a “Made-in-USA” manufacturing base for Arvind as AAML integrates advanced needle-punch technology—not to mention helping the subsidiary avoid tariffs—it also opens the door to a $2.58 billion total addressable market (TAM) across several stateside technical textile segments.
“The acquisition of Dalco-GFT marks a transformational milestone in AAML’s growth journey,” said Punit Lalbhai, vice chairman of Arvind Ltd., in a statement, adding that the integrated solution provider expects the transaction to support annual growth ambitions of 18 to 20 percent through “technology integration and sourcing synergies.”
While Arvind is best known as one of India’s largest denim producers, its reach extends to cotton shirts and knits, alongside a growing portfolio of technical textiles.
That said, AAML, in particular, has built a “strong platform in advanced materials,” drawing on and backed by Arvind Group’s manufacturing heritage. The subsidiary runs a vertically integrated operation, handling everything from yarn selection to finished products.
It serves three key sectors: Human Protection (think protective gear) and Composites (think fiber-reinforced plastic) and Industrial Applications (think conveyor belting). Since its start in 2015, AAML has posted a 23 percent compound annual growth rate (CAGR) over five years, with margins reportedly holding steady at about 15 percent.
It’s a good fit for Dalco-GFT.
Founded in 1988, the Conover, North Carolina-based business manufactures needle-punched non-woven specialty fabrics used across the automotive, industrial, construction and furniture sectors. The company operates manufacturing facilities in North and South Carolina with a combined annual production capacity of roughly 75 million pounds.
Dalco-GFT chief executive officer Joey Duncan will remain in his role following the transaction. At the same time, existing shareholders, including private equity firm Snow Peak Capital, will retain a minority stake in the business.
“Our customers can expect the same great service, relationships and product quality they’ve always known—and we’re excited about what this transaction makes possible for them going forward,” Duncan said. “Our team remains fully committed to serving our customers with the same responsiveness and reliability they have come to expect.”
Snow Peak Capital, which invested in Dalco-GFT in 2022, said the company expanded manufacturing capacity and diversified its customer base during its ownership period.
The acquisition was financed through debt at both the Dalco-GFT and AAML levels, though Arvind said leverage ratios remain within acceptable limits and that it plans to reduce debt over the medium term. InCred Capital served as financial advisor to AAML, while Lincoln International advised Snow Peak Capital on the sale.
