XL TechGroup And Procter And Gamble Form Strategic Relationship
MELBOURNE, Fla. and CINCINNATI, July 18, 2005 /PRNewswire/ -- XL TechGroup (AIM: XLT), the systematic architect and builder of an ongoing stream of high value new companies, announces the formation of a strategic relationship with The Procter & Gamble Company to explore new business opportunities using early stage technologies to address unmet market needs.
Consistent with P&G's "Connect + Develop" strategy aimed at accelerating innovation, this deal will couple portions of P&G's vast portfolio of Intellectual Property with XL TechGroup's expertise in systematically developing new technology businesses and scaling them to liquidity.
XL TechGroup's business model identifies unmet business needs, finds a technology solution that has a high potential of market adoption, develops the business and then rapidly scales it to achieve maximum value.
"We are delighted to be extending our existing strong relationship with such a prestigious partner as P&G by entering into this agreement, and we have already identified the first platform technology to develop," said Dr. John Scott, XL TechGroup's CEO. "We are constantly searching for technologies to address unmet market needs and this provides us with an opportunity to evaluate some of P&G's early-stage IP that we might progress to market."
XL TechGroup and P&G have worked together previously to help universities commercialize technologies donated by P&G. "Based on the success of our previous relationship, we have added a new model whereby XLTG is commercializing these early stage technologies directly from P&G," said Greg Hillebrand, manager university relations, P&G.
"P&G is broadly interested in collaboration with companies that can help build value and drive mutual growth," said Tom Cripe, associate director, open innovation and external business development at Procter & Gamble. "We believe XL TechGroup's unique capabilities to reach the market could enable innovative solutions that meet the needs of the world's consumers. This is a new type of partnership for P&G that could serve as a model for collaboration in the future."
About XL TechGroup
XL TechGroup identifies unmet market needs in the Biotech, Ecotech and Medtech sectors and then systematically creates and develops successful disruptive technology businesses to exploit these needs. The Company has developed a unique proven method to rapidly bring companies from inception to liquidity, matching unexploited IP from a group of technology partners to the identified unmet market need. XL TechGroup employs its own predictive algorithm to ensure the market will rapidly adopt the identified solution and then moves to scale the company specifically created to exploit the opportunity.
Before forming XL TechGroup, the management team created substantial value for shareholders over a twelve year period, successfully exiting six technology businesses at an average market valuation of approximately US $500 million.
The listing of the first company created under the XL TechGroup banner, AgCert International, continues to validate the systematic approach to value creation.
- AgCert International was created by XL TechGroup in May 2002 and is a global leader in the production and sale of agriculturally derived greenhouse gas emission reductions, with business in Europe, Asia, North America and South America. AgCert was listed on the London Stock Exchange on 8th June 2005 with an initial market cap of approximately euro 215 million. XL TechGroup maintains a 27.2% interest in AgCert. http://www.agcert.com The second company in the new generation of XL TechGroup businesses is: - TyraTech LLC, which was created by XL TechGroup in July 2004, is developing a new class of highly effective, non-toxic pesticides using cloned insect chemoreceptors, based on approved, safe, natural oils. Its development is progressing rapidly and TyraTech, which is 66.7% owned by XL TechGroup, is expected to be earning its first revenues by the end of 2005. http://www.tyratech.com
XL TechGroup has several other opportunities already at an advanced stage in its business creation pipeline.
For further information, see http://www.xltechgroup.com
About Procter & Gamble
Two billion times a day, P&G brands touch the lives of people around the world. The company has one of the strongest portfolios of trusted, quality, leadership brands, including Pampers(R), Tide(R), Ariel(R), Always(R), Whisper(R), Pantene(R), Bounty(R), Pringles(R), Folgers(R), Charmin(R), Downy(R), Lenor(R), Iams(R), Crest(R), Actonel(R), Olay(R), Clairol Nice 'n Easy(R), Head & Shoulders(R), and Wella. The P&G community consists of almost 110,000 employees working in over 80 countries worldwide.
P&G's External Business Development organization is charged with ensuring the company maximizes the value of its 'treasure trove' of technologies, know- how and trademarks by seeking mutually beneficial deals with external partners. The unit also helps find external technologies, products, and capabilities that can be used to drive growth on P&G's core businesses.
For more information please go to http://www.pgtechnologytransfer.com.The Procter & Gamble Company
CONTACT: John Scott, or Harold Gubnitsky, firstname.lastname@example.org , both of XLTechGroup Inc., +1-321-409-7403; or XL TechGroup media inquiries, HeatherSalmond, email@example.com , or Samantha Robbins, both ofAbchurch Communications, +44 (0) 20 7398 7700; or Sean Parker of TheProcter & Gamble Company, +1-513-983-7659, or firstname.lastname@example.org