- Spark Power (SPG) has signed a binding agreement to sell its Bullfrog Power business unit
- Consideration is up to $35 million, including an earnout of up to $3.5 million payable over a maximum of five years
- The company expects the proceeds to reduce its debt, fund working capital needs and support the growth of its core technical services and renewables segments
- Spark Power Group provides electrical contracting, operations and maintenance services, and energy sustainability solutions
- Spark Power (SPG) is up by 1.61 per cent, trading at $0.63 per share
Spark Power (SPG) has signed a binding agreement to sell its Bullfrog Power business unit.
Bullfrog offers affordable and accessible green energy to Canadian homes and businesses. Since 2005, the company has injected over 3 million MWh of green electricity back onto the grid and over 6 million gigajoules of green natural gas into Canadian pipelines.
Subsidiary Spark Power Solutions will undertake the transaction, which includes Bullfrog’s U.S. business and its subsidiary companies.
Consideration is up to $35 million, including an earnout of up to $3.5 million payable over a maximum of five years.
Spark expects the proceeds to reduce its debt, fund working capital needs and support the growth of its core technical services and renewables segments.
It anticipates ongoing opportunities to work alongside Bullfrog as sustainable energy demand continues to grow.
The transaction will close on or about November 15, 2022, subject to the arm’s-length buyer securing financing and the approval of Spark’s lender, which the company expects to receive.
“While Bullfrog has grown significantly under Spark since its acquisition, it represents a small portion of our current revenue portfolio, and as Spark Power embarks on the next phase of its maturity and strategic growth plan, it was determined that the business was not core to our technical services and renewables-based strategy,” stated Richard Jackson, Spark’s President and CEO.
Spark Power Group’s subsidiary, Spark Power Solutions, is an independent provider of electrical contracting, operations and maintenance services, and energy sustainability solutions to the industrial, commercial, utility and renewable asset markets in North America.
Spark Power (SPG) is up by 1.61 per cent, trading at $0.63 per share as of 10:42 am EST.
