• US market expansion: Arvind is acquiring US-based Dalco GFT to access the $2.5 billion US needle-punch non-wovens market and establish local manufacturing for automotive and geotextiles.
• Consolidated financial profile: Dalco will add ₹1,000 crore ($100 million) in revenue at a 17% EBITDA margin to Arvind's ₹2,000 crore base, forming a ₹3,000 crore combined entity with an EBITDA margin above 15%.
• Acquisition debt financing: The deal is funded through $100 million to $110 million in total debt at a borrowing rate of around 6%, split between Arvind Advanced Materials and non-recourse debt at the US entity.
• Staged buyout structure: Arvind acquired an initial 61% stake at 7.75 times EBITDA and has agreed to reach 100% ownership over four years at fixed, slightly lower multiples.
• Segment diversification plans: Although automotive currently accounts for 68% of Dalco's revenue, Arvind intends to reduce that concentration over time by introducing new offerings like filtration to accelerate growth.