Case Study

Kermel's MBO - April 2002

17 pages
December 2003
Reference: IMD-1-0202

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.

Management by Objectives, Buyout, Private Equity, Spin-off, Valuation, Textile
April 2002
Field Research
© 2003
Available Languages
Related material
Teaching note, Video
Case clearing houses
IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre

Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]

Harvard Business School Publishing

60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]

Asia Pacific Case Center

NUCB Business School

1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]


Research Information & Knowledge Hub for additional information on IMD publications

Discover our latest research
IMD's faculty and research teams publish articles, case studies, books and reports on a wide range of topics