Spark Power Announces Closing of the Sale of Bullfrog Power to Envest Corp.
OAKVILLE, ON / ACCESSWIRE / November 30, 2022 / Spark Power Group Inc. (TSX:SPG), parent company of Spark Power Corp. ("Spark Power" or the "Company"), is pleased to announce the closing of the previously announced sale of its Bullfrog Power Inc. …
OAKVILLE, ON / ACCESSWIRE / November 30, 2022 / Spark Power Group Inc. (TSX:SPG), parent company of Spark Power Corp. ("Spark Power" or the "Company"), is pleased to announce the closing of the previously announced sale of its Bullfrog Power Inc. business unit ("Bullfrog"), including its United States business carried on through Bullfrog Solutions USA Inc., and its subsidiary companies, on November 30, 2022. Bullfrog is being acquired by a wholly owned subsidiary of Envest Corp. ("Envest"), for total all-cash proceeds of up to $35.0 million, subject to customary adjustments and including an earnout of up to $3.5 million, payable over a maximum of five years. Proceeds from the transaction will be used to reduce Spark Power's debt and fund working capital needs.
Bullfrog, founded in 2005, is Canada's trusted sustainability solutions provider, offering businesses and homeowners access to electricity from clean, renewable sources through Renewable Energy Credits (REC's), Power Purchase Agreements (PPA's) and energy efficiency services. Through its history, Bullfrog has helped customers displace over two million tonnes of CO2 emissions and has serviced over 1,500 businesses and 10,000 homes. For the trailing twelve months ended September 30, 2022, Bullfrog generated revenue representing approximately 5% of Spark Power's total revenue over this period. Bullfrog was acquired by Spark Power in 2018.
Envest is a privately-owned independent energy producer based in Toronto, ON and an arm's length party to Spark Power.
"We believe that this transaction is an excellent strategic outcome for all parties involved, including for all of Bullfrog's great employees," said Richard Jackson, President & CEO of Spark Power. "Notably, proceeds from the transaction will facilitate near-term deleveraging and strengthening of Spark Power's balance sheet, while also providing Spark Power with additional liquidity to support growth in the next stage of the Company's maturity as we launch our new 2025 Let's Grow Better Strategy in the coming months. The transaction will also further streamline our business, allowing us to focus on our core Technical Services and Renewables businesses. We look forward to continuing to partner with Bullfrog on future opportunities under its new ownership. We believe that Bullfrog is a very complementary business to Envest and anticipate that both Bullfrog and Envest will benefit as a result of this transaction."