Spark Power Advances US Growth Strategy with Acquisition of One Wind Services
Nov 8, 2019
Spark Power Group has acquired One Wind Services and One Wind Services (US). One Wind is based out of Dartmouth, Nova Scotia with US facilities in Austin and San Benito, Texas.
Spark Power purchased One Wind with guaranteed proceeds on closing of C$13.0M and post-closing contingent proceeds of up to C$4.0M, for a total purchase price of up to C$17.0M. Proceeds on closing were in the form of cash, a promissory note, and Spark Power equity, similar in ratio to previous deals completed by the company. The contingent proceeds, if earned, will be in the form of cash, and are payable based on achieving certain key growth-based financial metrics over the 14-month period, post-closing. On a trailing twelve-month basis at September 30, 2019, One Wind generated approximately C$24.0M in revenue and adjusted EBITDA of C$4.4M, making this transaction highly accretive to Spark Power, including the effect of any contingent proceeds that may become payable.
One Wind specializes in delivering operations and maintenance (O&M), and construction-related services to leading renewable asset owners, OEMs, and developers. This acquisition will primarily complement the Company’s existing Northwind renewables business and further expand Spark Power’s geographic coverage in the Southwestern United States —approximately 80% of One Wind’s revenue comes from the US market — and Eastern Canada. The combination of One Wind with Spark Power’s existing Northwind business creates a true powerhouse and one of the leading independent providers of renewable asset operations and maintenance services in North America.
“We are very pleased to announce the completion of our eleventh transaction and welcome One Wind to the Spark Power Group of Companies,” said Jason Sparaga, Co-Founder and Co-CEO, Spark Power Corp. “One Wind has an outstanding leadership team whose commitment to excellence has shaped One Wind into the leading independent renewables operations and maintenance company that it is today. This partnership will position One Wind for accelerated growth within our renewables business and significantly extends our footprint in the Texas and Maritime markets—regions we’ve identified as highly strategic to our growth strategy. We are confident that this acquisition will create significant shareholder value and we will continue to work hard to earn the right to be our customers’ Trusted Partner in Power in these key locations.”
“This is an excellent fit for both our companies,” said Paul Pynn, President, One Wind. “Economic forces, customer demands, and environmental needs are disrupting the electrical industry as we know it and driving a shift toward clean energy generation. Joining Spark Power gives us the financial, operational, and strategic backing to provide a richer set of offerings to our collective customers. We look forward to growing with our customers and employees and contributing to a cleaner environment.”
