Arvind Advanced Materials Limited, an Indian textile and industrial materials company, has acquired a majority stake in Dalco-GFT, a US-based nonwovens manufacturer for $136 million.
| Deal at a Glance | |
|---|---|
| Acquirer: | Arvind Advanced Materials Limited (India) |
| Target: | Dalco-GFT (USA) |
| Value: | $136m |
| Type: | Acquisition |
| Closing Date: | Not disclosed |
| Buy-side Advisors: | InCred Capital (India) |
| Sell-side Advisors: | Lincoln International (USA) |
The transaction, in which Arvind has secured a 61% stake in Dalco-GFT while allowing existing shareholders to retain a minority shareholding, aims to strengthen the Indian company's supply chain and bolster its manufacturing resilience amid ongoing shifts in global trade patterns. The deal underscores Arvind's strategic focus on establishing a 'Made-in-USA' manufacturing presence.
Arvind intends to finance the acquisition through a combination of debt at both the target and acquirer levels, with plans to deleverage over the medium term as it integrates Dalco-GFT into its broader operations. The company expects that this move will enhance operational efficiency and market reach in the North American nonwovens sector.
Dalco-GFT's expertise in sustainable nonwoven solutions complements Arvind's existing portfolio, which includes a range of advanced materials for automotive, construction, healthcare, and consumer industries. The acquisition is anticipated to provide substantial growth opportunities within these sectors as demand for eco-friendly and technologically-advanced materials continues to rise.
Arvind's strategic move into the US market through this deal reflects its long-term commitment to expanding its geographic footprint and deepening its presence in key global markets. The acquisition of Dalco-GFT positions Arvind Advanced Materials to capitalize on emerging trends in manufacturing while enhancing its competitive position within the industrial goods sector.