FILTERMAG INTERNATIONAL ANNOUNCES FUNDING, NEW MANAGEMENT TEAM & CUSTOMERSJanuary 20, 2014
Innovator of Magnetic Filtration Solutions Raises $2.5M, Pursues $25B Worldwide Market Opportunities in Mining, Oil & Gas, Heavy Construction and Manufacturing
SCOTTSDALE, AZ - FilterMag International announces new management, funding and customers in response to pent-up worldwide demand for its breakthrough FilterMag product family. As the manufacturer of magnetic filtration products that substantially reduce the presence of harmful particles from oil, hydraulic and fuel systems used in critical assets relied upon in mining, oil and gas, heavy construction and manufacturing markets, FilterMag is pursuing a total addressable market (TAM) opportunity estimated in excess of $25 billion.
The challenge facing all oil and hydraulic filtration technologies deployed in essential assets such as drilling systems, fleet trucks, pumps and compressors is the ability to remove the smallest particles that cause the greatest wear and fatigue on parts and systems. FilterMag has developed a breakthrough magnetic filtration product family that dramatically improves the capture rate of the most harmful particles – in the sub-10 micron range – that cause three and a half times more wear than contaminants greater than 20 microns in size. As a result, life expectancies of strategic capital equipment can be extended significantly, system reliability and uptime can be improved, and operating costs can be reduced substantially. For example, a major mining company evaluated FilterMag’s on 28 of its diesel engines with extrapolated test results that produced a 1.6x lifecycle extension, a 38% reduction in operating cost per hour and an overall lifecycle savings of $1.49 million based on an initial investment of $88,480 in FilterMag products.
The FilterMag Breakthrough
As a magnetic filtration solution, FilterMag products use custom-designed, heat resistant Neodymium alloy magnets that are mathematically optimized and magnetically modeled for specific applications. These are the strongest rare earth permanent magnets in the world that are also used in magnetic resonance imaging (MRI) systems. Using a patented design, FilterMags non-invasively extract wear-causing particles from oil and hydraulic fluids without interfering with the flow. In addition, FilterMag products are engineered to focus a magnetic field inside a filter that is formulated to remove damaging particles from oil operating at up to 300 degrees F. This is in sharp contrast to most magnets that start to lose their magnetism at 180 degrees F.
New Management Team
To capitalize on its enormous global market opportunity, FilterMag has appointed Silicon Valley serial entrepreneur and investor Herbert J. Martin as its new CEO. Martin’s broad experience growing start-up and mid-cap companies has resulted in a track record of success in building substantial revenues, developing profitable business models and creating global channels and partnerships. He has served as CEO of several successful venture-back private companies including Mercator (sold to Onyx Systems), Wollongong (sold to Attachmate) and Salira Optical Network Systems (sold to Hitachi Data Systems).
“What’s remarkable about our value proposition is that a single FilterMag, that snaps on to oil, hydraulic and/or fuel filters in 60 seconds, can have a profound impact on extending the lifespan of crucial equipment used across a wide range of industrial markets,” Martin said. “The utter simplicity of our solution is matched by the application-specific magnetic modeling built in to every FilterMag. While magnetic filtration is not a new technology per se, our non-invasive and patented approach to contaminant removal - using the world’s most powerful rare earth magnets – is redefining this space. The bottom line is that paper, bypass and centrifugal filtration alternatives cannot compete with our results.”
To accelerate time-to-market initiatives and stimulate revenue growth, FilterMag has raised $2.5M in a private Series A preferred share offering to accredited and strategic investors. This new infusion of capital will also be used in a comprehensive program to attract and secure strategic partners and international distributors serving the mining, oil & gas, heavy construction, trucking and transit, marine and manufacturing market sectors.
Strategic Mining Customer
In response to widespread demand for its magnetic filtration solutions, FilterMag has added a global mining company as its latest customer, delivering products used in haul trucks, drills, bulldozers and graders at multiple sites in the US, Brazil, Australia and Indonesia. This adds to FilterMag’s successful installations in land and sea-based drilling platforms, mud pumps, top drives and generator sets across multiple oil and gas locations as well as thousands of installations in oil and natural gas distribution systems.
For more information, visit http://www.filtermag.com
Most Read Articles