Successful carve-out from a large group
Kermel is the European leader in aramid fibres for heat- and flame-proof clothing with its Kermel® fibres.
Kermel® fibres are used for two different applications: protection for firefighters, armoured vehicles and police equipment; and work clothes for high-risk industries (petrochemicals, metalworking, glass making, electricity, etc.).
At the beginning of 2002, the Rhodia Group was suffering from heavy debt and decided to sell certain activities. Kermel, which was then part of Rhodia’s performance fibres division, was considered non-core and was put up for sale.
Kermel’s management took the initiative and sought a financial partner able to structure a takeover that would allow the company to pursue its innovation and growth policy, which had been penalised by the budgetary restrictions imposed by the Group.
A new manager with international experience was brought in to strengthen the existing management team. A deal was structured in collaboration with Rhodia and financial institutions to allow a smooth transition and provide the company with the financial resources to generate growth.
An opportunity for growth
Argos Soditic and management identified two key opportunities to accelerate growth of the company.
- New technical applications in the industrial sector with the new Kermel® Tech fibre, mainly used in the manufacture of electric insulation filters and papers.
- An active geographic diversification policy by furthering development in Asia and North America.
Activity was concentrated on protective clothing.
The majority of the shareholding was sold in early 2007. Argos Soditic retained a minority interest and management is continuing its business adventure with another investment fund.
“With Argos Soditic we were able to create value within the company by implementing a strategy of innovation and growth in areas where our former parent company had previously held us back.”
Markus Schwyn – Chairman and CEO of Kermel SA