Retail energy services company Spark Energy has entered into a purchase and sale agreement for the acquisition of Verde Energy, the Norwalk-based independent renewable energy supplier.
Expected to be completed in the second half of this year pending regulatory approval, the agreement calls for Houston-based Spark to pay $45 million in cash at closing and installment payments totaling $20 million over the following 18 months.
The deal was announced as part of Spark”™s quarterly earnings statement. “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 million RCEs,” said Spark President and CEO Nathan Kroeker, referring to residential customer equivalents, a measurement used to denote the typical annual commodity consumption by a single-family residential customer.
“Verde provides us with a 100 percent renewable energy brand and additional capabilities with an established presence in 40 utility service territories across eight states,” Kroeker added.
For the three months ended March 31, Spark posted what Kroeker called “our strongest first quarter in the company’s history,” with record Adjusted EBITDA of $34.2 million, record Retail Gross Margin of $64.3 million, and Net Income of $11.4 million.
