Specialty chemicals maker American Vanguard Corp. (AVD - Free Report) , through its fully-owned unit Amvac Chemical Corporation, has cut a joint venture pact with life science company, TyraTech, Inc. Under the deal, the entities will jointly develop and market pesticide products that feature TyraTech’s Nature’s Technology. The technology ensures the delivery of products with highest level of efficacy and safety.
The collaboration will market the novel pesticide products and technologies in the consumer household and lawn and garden retail markets globally. Moreover, it will make and distribute products and technologies across commercial, institutional, professional, crop protection and seed treatment markets.
The joint venture will also develop new combinations with synthetic compounds leveraging TyraTech’s proprietary Extend Technology. This will help in improving efficacy and environmental impact on an array of crops, providing Amvac with fresh growth opportunities globally.
The agreement will allow TyraTech to retain all rights to use its technology in the human and animal health markets along with other specific consumer markets. Amvac, on the other hand, will have access to TyraTech’s screening platform which is used to identify synergistic combinations of natural compounds.
The joint venture will be owned jointly by Amvac and TyraTech, with the former holding majority interest. It will be based in North Carolina’s Research Triangle Park area, giving it direct access to TyraTech’s R&D, production, and supply chain teams.
American Vanguard reported solid third quarter results last month with profit surging 75% year over year to $8.1 million, boosted by healthy sales of its soil fumigants and insecticides. Earnings of 28 cents a share for the quarter trounced the Zacks Consensus Estimate of 23 cents. Revenues jumped 23% year over year to $90.8 million.
American Vanguard expects its results will be supported by the successful roll out of its herbicide co-marketing program with Monsanto (MON - Free Report) . Its crop protection products are also expected to aid to sales growth.
American Vanguard currently retains a Zacks #1 Rank, which translates into a short-term Strong Buy rating.