XL Fleet Corp. introduced the acquisition of Spruce Energy, the most important privately held proprietor and operator of residential rooftop photo voltaic programs within the U.S. with greater than 52,000 subscribers. In reference to the acquisition of Spruce Energy, XL Fleet additionally unveiled its new company technique to supply subscription-based options for rooftop photo voltaic, battery storage, EV charging and different distributed vitality sources.
On September 9, 2022 after market shut, XL Fleet accomplished the acquisition of the Spruce Energy enterprise from funds managed by HPS Funding Companions for whole money consideration of roughly $58 million and the idea of roughly $542 million of debt. The Board of Administrators of XL Fleet unanimously authorized the transaction.
Spruce Energy owns and operates greater than 52,000 residential rooftop photo voltaic programs. The corporate sells the ability generated by its programs to householders pursuant to long-term agreements that obligate the corporate’s subscribers to make recurring month-to-month funds. Spruce Energy’s operational headquarters are in Houston, Texas and the corporate had roughly 110 full time staff as of September 1, 2022.
Spruce Energy’s revenues have greater than doubled since 2019, pushed primarily by the acquisition of 10 rooftop photo voltaic portfolios. The corporate doesn’t have a salesforce or set up technicians. Spruce Energy has grown by buying portfolios of residential photo voltaic programs from different firms and traders relatively than promoting particular person programs to householders by a direct-to-consumer salesforce like a lot of its rivals. This method has allowed the corporate to maintain its buyer acquisition prices low.
“Earlier this yr, we communicated our intent to remodel the corporate and create shareholder worth by strategic M&A,” mentioned Eric Tech, CEO of XL Fleet. “The acquisition of Spruce Energy is a vital first step in that transformation and would be the cornerstone of our new technique to supply subscription-based options for rooftop photo voltaic, battery storage and EV charging to householders and small companies.”
Information merchandise from XL Fleet