American Vanguard Invests in TyraTech Natural Product Technologies
NEWPORT BEACH, Calif.--(BUSINESS WIRE)-- American Vanguard Corporation (NYS: AVD) today announced that it has completed an investment in TyraTech, Inc. to participate in the continued development and marketing of natural products for human and animal health applications. American Vanguard has invested $3.7 million to secure a 29.46% ownership position in TyraTech, Inc.
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. 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 which are expected to be commercialized during 2013 and 2014 demonstrate performance characteristics that are superior to existing, commercially available, offerings. The global addressable market potential for such applications is estimated to be in the range of $8 to 10 billion annually.
This investment follows the December 2012 creation of Envance Technologies, LLC 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 commented: "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, Inc, commented: "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."
About American Vanguard
American Vanguard Corporation is a diversified specialty and agricultural products company that develops and markets products for crop protection and management, turf and ornamentals management and public and animal health. American Vanguard is included on the Russell 2000® & Russell 3000® Indexes and the Standard & Poors 600 Index. To learn more about American Vanguard, please reference the Company's web site at www.american-vanguard.com.
TyraTech, Inc. is a natural life sciences company that utilizes its proprietary technology to develop solutions to address the unmet and increasing global demand for effective, safe, and non-toxic insect and parasite technologies for human and animal health. Founded in 2004, TyraTech made its Initial Public Offering in June 2007 on the AIM section of the London Stock Exchange, where it trades under the symbols TYR and TYRU. To learn more about TyraTech, please visit the Company's web site at www.tyratech.com.
American Vanguard Corporation
William A. Kuser, 949-260-1200
Director of Investor Relations
The Equity Group Inc.
Lena Cati, 212-836-9611
KEYWORDS: United States North America California
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