Michigan Capital Advisors, a private equity firm in Bloomfield Hills focused on the automotive and transportation-related industries, today announced it has partnered with Material Impact, a Boston-based venture capital firm, in a joint investment in Fusion Coolant Systems (FCS) in Canton Township. Terms of the transaction were not disclosed.
FCS is a patented disruptive technology company that uses supercritical carbon dioxide 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, the company states.
FCS’s supercritical carbon dioxide technology promotes a healthy work environment that is bacteria free and has minimal environmental impact. Michigan Capital’s growth equity investment was supported by existing investors including Michigan Investment in New Technology Startups, 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,” says Chip McClure, managing partner of MCA. “We are excited to partner with the management team and other investors to further expand this technology into the machine tooling industry.”
FSC co-founder Steven Skerlos, the Arthur F. Thurnau Professor of Mechanical Engineering at the University of Michigan, says his 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.”
Michigan Capital Advisors focuses on the underserved Tier II and III suppliers in the automotive and transportation related industries with $20 million to $200 million in annual revenue.
FSC was developed by researcher, educator and serial entrepreneur, Dr. Stephen Skerlos. FCS’s 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.