ROSH HA’AYIN, Israel & BOSTON--(BUSINESS WIRE)--Phytech Ltd. (“Phytech” or the “Company”), a digital farming automation and data provider, and Thomas H. Lee Partners, L.P. ("THL"), a premier private equity firm investing in growth companies, today announced the closing of a new round of growth investment. Under the terms of the agreement, funds managed by THL, including THL Automation Fund L.P., and existing anchor investors will invest $23.5 million to support growth of the Company. THL Managing Director Josh Bresler has joined the Phytech board of directors as part of the transaction.
Phytech helps farmers harness the power of digital farming in optimizing production and transforming operations by connecting them directly to their plants. With its proprietary technology of vertically integrated internet of things (“IoT”) devices, artificial intelligence (“AI”), and digital platforms, the Company’s offering focuses on its farmers’ success by ensuring the highest level of service. Constantly sensing, communicating, and analyzing plant demands, Phytech’s solutions provide real-time actionable recommendations to its farmer customers.
Phytech’s ’PlantBeat’ irrigation management platform is used by 600 top-tier growers on approximately 15,000 farms across the U.S, Australia, and Israel, which are collectively accountable for 30% of global almond production, 35% of U.S. apple production and 28% of U.S. citrus production. Phytech’s value proposition to farmers centers on improving plant health and longevity, increasing yield quality, avoiding yield loss due to reduction of bi-annual bearing, water savings, labor cost reduction, and reducing emissions pollution. The Company’s irrigation management application assists farmers with daily operational in-field amount and pressure control, as well as in meeting regulatory water conservation demands. Additionally, Phytech’s breakthrough natural plant-based BRIX (high sugars) optimization application assists fruit growers to achieve higher sugar content without chemical or over stressing practices.
“We are grateful for the trust and support of THL and our existing investors as well as the vote of confidence from the growing community of global leading growers that are transforming their daily farming practices with our Plant-Demand production applications, resulting in healthier crops, improved yields, and reduced use of resources. Global agriculture is facing pressure from all directions,” said Sarig Duek, Phytech’s CEO. “Farmers are seeing tightening margins, increasing water conservation demands, rising labor costs, and more. Planetary food producing capacity is challenged by climate change, topsoil erosion, water stress, and urbanization. The necessity for farmers to optimize production in meeting global food security needs and demands is clear.”
“Listening closely to our customers, this funding will serve primarily to add needed automation capabilities and support our global market expansion. Now, more than ever, we believe that all farmers around the globe should be provided with the opportunity to transform to Plant-Demand production practices, and plan to achieve this goal with the support of our world leading partners.”
“We couldn’t be more excited to be partnering with Phytech as it enters its next stage of growth. The Phytech team have built a technology platform with an undeniable customer value proposition featuring powerful positive outcomes for both farmers and the planet. We look forward to supporting the Company’s continued market expansion and investment in irrigation automation capabilities to support its customers with world class service and outcomes,” added Josh Bresler of THL.
Weil, Gothsal & Manges and Herzog Fox & Neeman advised THL on the investment. Raz-Dlugin advised Phytech.
Phytech is a Digital farming company that helps growers optimize production by providing real-time, direct, Plant health status. Powered by advanced Plant IOT devices, data analytics and artificial plant intelligence, Phytech provides growers actionable applications to achieve optimized yields and healthier crops while reducing operational costs. Phytech’s revolutionary solution is deployed by leading growers worldwide.
For more information, visit http://www.phytech.com.
About Thomas H. Lee Partners, L.P.
Thomas H. Lee Partners, L.P. ("THL") is a premier private equity firm investing in middle market growth companies, headquartered primarily in North America, exclusively in four sectors: Consumer, Financial Services, Healthcare and Technology & Business Solutions. We couple our deep sector expertise with dedicated internal operating resources to transform and build great companies of lasting value in partnership with management. Since 1974, we have raised more than $25 billion of equity capital, invested in over 150 companies and completed more than 400 add-on acquisitions representing an aggregate enterprise value at acquisition of over $200 billion. With dedicated sector and operating teams, THL brings deep domain expertise and resources to build great companies by helping to accelerate growth, improve operations and drive long-term sustainable value in partnership with management. For more information on THL, please visit THL.com.