Automotive and transportation focused investment firm to expand global reach of rapidly growing manufacturing technology company
Bloomfield Hills, Mich. (October 11, 2018) – Michigan Capital Advisors (“MCA”), a private equity firm focused on the automotive and transportation-related industries, recently announced that it has partnered with Material Impact, a Boston-based venture capital firm, in a joint investment in Fusion Coolant Systems (“FCS”). Terms of the transaction were not disclosed.
FCS is a patented disruptive technology company that uses supercritical carbon dioxide (scCO2) as a cutting lubricant to the metal machining industry. The technology has been proven to reduce the costs of manufacturing and improve operational throughput in sectors such as medical, aerospace, and automotive. FCS’s supercritical carbon dioxide technology promotes a healthy work environment that is bacteria free and has minimal environmental impact. MCA’s growth equity investment was strongly supported by existing investors including Michigan Investment in New Technology Startups (MINTS), Amherst Fund, and Invest Michigan, and will support FCS’s continued growth strategy and pursuit of new opportunities.
The investment in FCS fits in MCA’s technology vertical, one of five industry sectors targeted by the firm. This is MCA’s second portfolio investment since its founding in 2017.
“Fusion Coolant has truly developed a game-changing technology that addresses an age-old challenge of the machine tooling industry, providing the first cost effective, environmentally friendly cooling and lubrication solution to a wide array of metal cutting and forming applications,” said Chip McClure, MCA Managing Partner. “We are excited to partner with the management team and other investors to further expand this technology into the machine tooling industry.”
Founder Steven Skerlos, Arthur F. Thurnau Professor of Mechanical Engineering at the University of Michigan explained, “Our team has penetrated a number of industry-leading global manufacturers, proving that the technology improves the profitability of material removal operations while eliminating health and environmental hazards.”
“The addition of the new investment firms, Michigan Capital Advisors, and Material Impact, with their wealth of experience and profound industry expertise, is confirmation of the company’s progress during the last several years and a testament of its current business strategy and future prospects,” stated Rafael Castilla, MINTS, University of Michigan’s Investment Office.
About Michigan Capital Advisors
Michigan Capital Advisors is a Michigan-based private equity firm focused on the underserved Tier II and III suppliers in the automotive and transportation related industries with $20 – $200 million in revenue. Leveraging its deep industry expertise and relationships, MCA is focused on driving sustainable growth for its investments, utilizing longer hold periods and prudent leverage levels.
For more information, please visit michigancapitaladvisors.com or contact Darrell Smith at firstname.lastname@example.org.
About Fusion Coolant Systems
Based in Canton, Michigan, FSC was developed by researcher, educator and serial entrepreneur, Dr. Stephen Skerlos. FCS’s critical patents secure the process of using supercritical carbon dioxide as a machining coolant and vehicle to deliver dry and enhanced lubrication to a cutting zone for applications demanding high lubrication and high cooling. For more information, please visit fusioncoolant.com.