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Spark Energy Signs Agreement To Acquire Retail Supplier With 145,000 RCEs
Spark Energy, Inc. announced that it has signed a purchase agreement to acquire Verde Energy, which Spark said is expected to add approximately 145,000 RCEs and $25 million in annual Adjusted EBITDA
Under the Verde transaction, Spark will pay cash of $45 million at closing and installment payments totaling $20 million over 18 months. There is an additional earnout that is subject to Verde's ability to achieve defined performance metrics.
Verde operates in eight states, selling 100% renewable electricity and natural gas products under the "Verde" brand.
Spark, in reporting earnings this morning, also confirmed it closed on the previously reported (click here) acquisition of Perigee Energy and exercised an option for additional customers that combined will add another 60,000 RCEs. This transaction establishes Spark’s presence in Delaware, bringing its totals to 91 utilities in 19 states.
"We are also pleased to announce today the pending acquisition of Verde Energy. We expect this acquisition to add approximately $25 million of annual Adjusted EBITDA after synergies and will add approximately 145,000 RCEs to our portfolio, bringing our total RCE count to nearly 1,000,000 RCEs. Verde provides us with a 100% renewable energy brand and additional capabilities with an established presence in 40 utility service territories across eight states. Verde is expected to close in the second half of 2017," said Nathan Kroeker, Spark Energy's President and Chief Executive Officer.
"As we complete the onboarding process for the customers acquired in the Perigee Energy transactions and prepare to close on and integrate Verde, we continue to anticipate growth through organic means and additional M&A opportunities throughout the rest of the year," said Nathan Kroeker, Spark Energy's President and Chief Executive Officer.
Spark expects to close the Verde acquisition in the second half of 2017 utilizing a combination of cash on hand along with additional borrowings under Spark's credit facilities. This transaction is subject to lender consent and customary regulatory approvals.
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May 8, 2017
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Copyright 2010-17 EnergyChoiceMatters.com
Reporting by Karen Abbott • kabbott (at) energychoicematters.com
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