Ref: IMD-1-0202

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Reference: IMD-1-0202

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Kermel's MBO - April 2002

Benoit F. Leleux

By Professor Benoit F. LeleuxBenoit F. Leleux and Henri Bourgeois

In April 2002 Venkatesh Tulluri, then strategy director of Rhodia's technical fibers division, announced to his management that he wanted to engineer a spin-off and management buyout (MBO) of Kermel, a small company within Rhodia's portfolio.

Kermel was a niche player in the specialty fiber market that had not been included in the ongoing company's asset divestment program. The case investigates the evolution of the MBO process and the hurdles Venkatesh Tulluri has to overcome to give life to his endeavor.

This case is interrelated with two other cases that focus on the other actors of the deal: Argos Soditic, the private equity investor, and TCFG, the M&A advisor of Tulluri and Kermel's management team.

Keywords Buyout, Finance, Management by Objectives, Private Equity, Spin-off, Textile, Valuation
Settings April 2002
Type Field Research
Copyright ©2003
Language English
Related material Teaching note, Video
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Reference: IMD-1-0202

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