XL Fleet acquires DG solar service provider Spruce Power

• US fleet electrification and also energy performance options carrier XL Fleet Corp (NYSE: XL) has acquired dispersed generation (DG) solar systems proprietor and also driver Spruce Power in a bargain backing its new method to offer subscription-based services for roof solar, battery storage as well as EV charging.

XL Fleet paid around USD 58 million (EUR 58m) in cash money as well as likewise assumed USD 542 million of financial obligation in order to acquire Spruce Power, the customer said on Monday. The firm was sold by funds handled by HPS Investment Partners LLC.

Houston, Texas-based Spruce Power runs more than 52,000 domestic rooftop solar systems and also is offering the output under lasting agreements with homeowners across 16 states. In the twelve month via June 30, 2022, it scheduled USD 83 million in revenues and a net profit of USD 15 million. The business had around 110 permanent workers since September 1.

XL Fleet executed the purchase to sustain its plan to transform its company and supply better shareholder worth via mergers and also purchases. According to the buyer, the action will certainly create exposure over revenue streams thanks to the repeating monthly repayments coming from Spruce Power's agreements.

"The combination of Spruce's existing subscriber-base and also tested servicing platform with our funding and also small company connections positions us to take advantage of fast development in rooftop solar, power storage space and also electric vehicle adoption while producing a course to more foreseeable revenues, profits and cash flow for our investors," said XL Fleet's chief executive Eric Tech.

Complying with the acquisition of Spruce Power, XL Fleet plans to alter its name and also introduce a new brand name identity to reflect its concentrate on subscription-based remedies for roof solar, power storage space, EV billing and also various other energy-related items, it stated. The mixed organization will certainly be led by Christian Fong, the current chief executive officer of Spruce Power, from February 15, 2023. Till then, XL Fleet's present chief executive officer will certainly continue to be at the helm of the firm.