Spark to sell green energy provider Bullfrog Power for USD 26m
The Ellershouse Wind Farm in Nova Scotia, Canada. Source: Bullfrog Power Inc.
Canadian end-to-end electrical services provider Spark Power Group Inc (TSE:SPG) announced today it is selling green energy retailer Bullfrog Power for up to CAD 35 million (USD 25.7m/EUR 25.6m).
The deal includes Bullfrog Power Inc, its US activities carried on through Bullfrog Solutions USA Inc and its subsidiaries. The business provides green energy, including renewable electricity and green natural gas, through power purchase agreements (PPAs) or by matching its customers’ consumption with the purchase of renewable energy certificates (RECs).
“While the business 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 Bullfrog business was not core to our technical services and renewables-based strategy,” said Richard Jackson, president and CEO of Spark Power.
If the buyer secures the required financing for the transaction, it should close on or about November 15, 2022. Spark Power did not disclose the identity of the other party to the deal, only saying that it is “an arm's length buyer”.
The purchase price mentioned above includes up to CAD 3.5 million in earnout, payable over a maximum of five years. The seller intends to use the proceeds to reduce its debt and fund working capital needs.