The investment totals $3.7 million to secure a 29.46 percent ownership of TyraTech, Inc.
NEWPORT BEACH, Calif. - American Vanguard Corporation announced that it has completed an investment in TyraTech to participate in the continued development and marketing of natural products for human and animal health applications. The investment totals $3.7 million to secure a 29.46 percent ownership position in TyraTech.
American Vanguard's equity investment achieves an important strategic objective by expanding its involvement in the development of products derived from natural sources and by participating in the penetration of such technologies in non-agricultural market segments, the company said. TyraTech has developed more than a dozen unique products that show efficacy as mosquito, fly, flea and tick repellents, head lice control treatments and intestinal parasitic control agents. Several of these products are expected are expected to be commercialized by 2013 and 2014.
This investment follows the December 2012 creation of Envance Technologies, between AMVAC-Chemical Corporation (a wholly-owned subsidiary of American Vanguard) and TyraTech, Inc. for the purpose of developing and commercializing best-in-class technologies for the global consumer household and lawn & garden retail markets. Envance Technologies, which is majority owned by AMVAC-Chemical, already has its first commercial product line, Terminix Ultimate Protection, on the shelves of a major U.S. retail home improvement chain. The global addressable market potential for such products is estimated to be between $3.5 and 4.5 billion annually. Envance also expects to develop new combinations of natural and synthetic compounds using TyraTech’s patented Extend Technology.
Eric Wintemute, chairman & CEO of American Vanguard Corporation said, “This investment solidifies our commitment to the development and commercialization of effective human and animal health products derived from natural sources. American Vanguard’s existing non-crop business addresses mosquito and general-purpose commercial pest control with a proven chemical product portfolio. TyraTech’s advanced technology and product formulations deploy natural defenses for individual protection from many threats that can compromise human and animal health. Our ownership stake in TyraTech joins us in a very complementary mission, with a clearly aligned mutual interest in safeguarding both public and personal health.”
Alan Reade, executive chairman of TyraTech, said, “The commitment and support of American Vanguard gives confidence in our strategy and credence to our belief that we are in the right markets with the right products. We are seeing a significant and growing desire for products which are natural, safer and more effective within our markets and we aim to be at the forefront of this transformational shift in demand. We are most grateful for American Vanguard’s support, which provides a solid foundation from which we can build the TyraTech business.”