XL Fleet Corp. announces the acquisition of Spruce Power, the largest US residential rooftop solar system owner and operator with over 52,000 subscribers. In conjunction with its acquisition of Spruce Power, XL Fleet also announced a new corporate strategy to provide subscription-based solutions for rooftop solar, battery storage, EV charging and other distributed energy resources.
Following the market close on September 9, 2022, XL Fleet completed its acquisition of the Spruce Power business from funds managed by HPS Investment Partners. The transaction is subject to aggregate cash consideration of approximately $58 million and assumption of debt of approximately $542 million. XL Fleet’s board of directors unanimously approved the transaction.
Spruce Power owns and operates over 52,000 residential rooftop solar systems. The company sells the electricity generated by its system to homeowners under long-term contracts that obligate the company’s subscribers to make regular monthly payments. Spruce Power’s operational headquarters is located in Houston, Texas and has approximately 110 full-time employees as of September 1, 2022.
Spruce Power’s revenues have more than doubled since 2019, largely due to the acquisition of 10 rooftop solar portfolios. The company does not have a sales person or an installation technician. By acquiring a portfolio of residential solar systems from other companies and investors, Spruce Power does not sell individual systems to homeowners through direct-to-consumer sales like many of its competitors. I have grown up. This approach has allowed the company to keep customer acquisition costs low.
XL Fleet CEO Eric Tech said: “The acquisition of Spruce Power is a significant first step in that transformation and our commitment to providing homeowners and small businesses with subscription-based solutions for rooftop solar, battery storage and EV charging. It will be the basis for our new strategy.”
Notice from XL Fleet