POWELL BUTTE, Ore.—Garnetread, the Powell Butte-based company that offers its patented technology for garnet-studded tire treads for licensing or royalties, is for sale.
The company seeks $150,000 plus 15 cents for every tire sold that uses Garnetread technology, according to Peter J. Poullos, Garnetread vice president of business development. The sale price includes all patent rights, the company website, product training, formula process information, raw materials supply sources and supplier details, Poullos said.
Patented by Garnetread owner James Scheller in 1978, the Garnetread technology involves adding industrial-grade garnets to tire treads as a way of greatly improving traction in winter road conditions without the damage to road surfaces that studded tires can cause.
To date, more than 100,000 tires have been manufactured using Garnetread's technology, Scheller said in a recent interview. However, he and Poullos said the company has never made tires itself, but has relied on other companies—including Oliver Rubber Co., before its sale to Michelin—to make the tires.
"It is our belief that existing tire industry manufacturers, with their existing, expansive market access, strategic alliances and financial resources, would enable the rapid use of Garnetread's technology," Poullos said.
There have been no viable purchase offers to date, although there have been some inquiries, according to Poullos.
Some parties have made offers of substantial passive investment in Garnetread over the past few months, but the company decided such investments would complicate any potential sale, he said.
Garnetread is awaiting word from the U.S. and Canadian patent offices on its second patent for Garnetread technology.