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This case provides insights into the concept of leveraged buy-out (LBO) and its use as a financial tool in acquisitions, with specific reference to Tata Tea''s takeover of global tea major Tetley. This deal which was the biggest ever cross-border acquisition, was also the first-ever successful leveraged buy-out by any Indian company. The case examines the Tata Tea-Tetley deal in detail, explaining the process and the structure of the deal. The case is aimed at MBA/PGDBA students as part of the Finance elective curriculum. The case helps them to understand the mechanism of LBO. Through the Tata-Tetley deal the case attempts to give students an understanding of the practical application of the concept. Students are also expected to understand the merits and demerits of the LBO mechanism and the problems in the Indian Financial system, which have had an impact on the acceptance of LBO as a method of financing.