Bolt-on acquisition enables customers to deploy
more charging infrastructure at their facilities more rapidly and
with a lower total cost of ownership
Expands XL Fleet’s EV charging infrastructure
capabilities and unlocks additional energy management and savings
services for customers
Expanded platform enables additional sales
opportunities for existing and potential XL Fleet customers
Profitable business with $18 million of revenue
generated in 2020
XL Fleet Corp. (NYSE: XL) (“XL Fleet” or the “Company”), a
leader in fleet electrification solutions for commercial and
municipal fleets, today announced the acquisition of World Energy
Efficiency Services, LLC (“World Energy”) for total cash and stock
consideration of approximately $16 million.
World Energy is a leading provider of energy efficiency,
renewable technology, electric vehicle charging station and other
energy solutions to customers across the New England region. By
leveraging its comprehensive solutions in combination with utility
incentive programs, project management and financing, World Energy
assists companies throughout all aspects of the electrification
process. The company provides full-service EV charger
installations, including the assessment of a location’s electrical
infrastructure, site layout of the charging area plan and equipment
installation.
“Availability of robust electric vehicle charging and
infrastructure solutions is critical to meeting the long-term fleet
electrification goals of the global industry and our customers,”
said Tod Hynes, Founder and President of XL Fleet. “Some of our
largest customers have identified that fleet facility power
constraints create a unique and large challenge when trying to
charge dozens and even hundreds of vehicles at the same location.
The team at World Energy is filled with experts that can help solve
this problem by incorporating energy efficiency measures and solar
power, while integrating EV charging to increase the amount of
energy available for fleet vehicle charging.”
“We remain focused on eliminating barriers to electrification,
and are committed to making it easier, cheaper and simpler for
companies to electrify their fleets,” continued Mr. Hynes. “We are
incredibly excited to bring World Energy’s experience and expertise
in house. This transaction reflects a highly complementary addition
to our XL Grid offering, improving our ability to reduce the total
cost of ownership for the charging infrastructure needed to power
fleet vehicles.”
“The highly strategic bolt-on acquisition is consistent with our
growth strategy, our focus on electrification as a service, and was
enabled by our new public platform with more than $400 million of
cash,” said Dimitri Kazarinoff, Chief Executive Officer of XL
Fleet. “As our customers look to install and operationalize their
electric fleets, they will need seamless electric charging
infrastructure. Our customers will greatly benefit from the
supplementary energy efficiency services that we will gain with the
acquisition of World Energy and its experienced team. World Energy
amplifies the value of our XL Grid division by embedding critical
charging solutions to deliver energy and cost savings to our
expanding base of customers.”
“World Energy’s track record of winning in the energy efficiency
utilities space within the U.S. market positions us to bring
incredible value to XL Fleet’s suite of fleet electrification and
charging infrastructure solutions,” said Rick Galipeau, President
of World Energy. “We are tremendously excited about joining the XL
Fleet team and bringing our commercial relationships to their
world-class platform.”
Transaction & Financial Overview
Total consideration for the World Energy acquisition is
approximately $16 million, comprised of $8.0 million in cash paid
on the closing date and the obligation to issue newly issued shares
of XL Fleet common stock valued at $7.0 million. The purchase price
is subject to an adjustment for closing date net working capital
and an additional earn out payment of $1.0 million payable based on
the achievement of World Energy’s 2021 revenue target.
World Energy generated $18 million of total revenue and was free
cash flow positive for full-year 2020. The transaction was approved
by both companies' Boards of Directors and was closed effective May
17, 2021.
Conference Call Information
The XL Fleet management team will host a conference call to
discuss its first quarter 2021 financial results and the World
Energy acquisition on Monday, May 17, 2021 at 5:00 p.m. Eastern
Time. The call can be accessed live over the telephone by dialing
855-327-6837, or for international callers, 631-891-4304 and
referencing XL Fleet. Alternatively, the call can be accessed via a
live webcast accessible on the Events & Presentations page in
the Investor Relations section of The Company’s website at
www.xlfleet.com. A replay will be available shortly after the call
and can be accessed by dialing 844-512-2921, or for international
callers, 412-317-6671. The passcode for the replay is 10014684. The
replay will be available until May 31, 2021. An archive of the
webcast will be available for a period of time shortly after the
call on the Investor Relations section of the Company’s website at
www.xlfleet.com.
About XL Fleet Corp.
XL Fleet is a leading provider of vehicle electrification
solutions for commercial and municipal fleets in North America,
with more than 150 million miles driven by customers such as The
Coca-Cola Company, Verizon, Yale University and the City of Boston.
XL Fleet’s hybrid and plug-in hybrid electric drive systems can
increase fuel economy up to 25-50 percent and reduce carbon dioxide
emissions up to 20-33 percent, decreasing operating costs and
meeting sustainability goals while enhancing fleet operations. XL
Fleet’s plug-in hybrid electric drive system was named one of TIME
magazine's best inventions of 2019. For additional information,
please visit www.xlfleet.com.
About World Energy Efficiency Services
World Energy Efficiency Services is an industry leader in the
delivery of turnkey energy efficiency, renewable technology,
electric vehicle charging station and other cutting-edge energy
solutions. Our organization is focused on improving the overall
energy efficiency of our clients, translating directly into
significant bottom-line savings. By making energy-efficiency
upgrades and adding sophisticated controls to lighting, heating,
ventilation, air conditioning, refrigeration, and process
equipment, clients can expect a material reduction in energy use, a
30-60% decrease in monthly utility costs, and a smaller carbon
footprint. By combining comprehensive energy-efficiency solutions
with utility incentive programs, project management and financing,
World Energy Efficiency Services removes the barriers which can
deter its customers from becoming more energy efficient, adopting
solar solutions, and/or implementing electric vehicle charging
stations.
For more information about World Energy Efficiency Services, see
www.WorldEnergyES.com.
Forward Looking Statements
Certain statements in this press release may constitute
“forward-looking statements” within the meaning of the federal
securities laws. Forward-looking statements generally are
accompanied by words such as “believe,” “may,” “will,” “estimate,”
“continue,” “anticipate,” “intend,” “expect,” “should,” “would,”
“plan,” “predict,” “potential,” “seem,” “seek,” “future,”
“outlook,” and similar expressions that predict or indicate future
events or trends or that are not statements of historical matters.
These statements are based on various assumptions, whether or not
identified in this press release, and on the current expectations
of management and are not predictions of actual performance.
Forward-looking statements are subject to a number of risks and
uncertainties that could cause actual results to differ materially
from the forward-looking statements, including but not limited to
failure to realize the anticipated benefits from the business
combination; the effects of pending and future legislation; the
highly competitive nature of the Company’s business and the
commercial vehicle electrification market; litigation, complaints,
product liability claims and/or adverse publicity; cost increases
or shortages in the components or chassis necessary to support the
Company’s products and services; the introduction of new
technologies; the impact of the COVID-19 pandemic on the Company’s
business, results of operations, financial condition, regulatory
compliance and customer experience; the potential loss of certain
significant customers; privacy and data protection laws, privacy or
data breaches, or the loss of data; general economic, financial,
legal, political and business conditions and changes in domestic
and foreign markets; the inability to convert its sales opportunity
pipeline into binding orders; risks related to the rollout of the
Company’s business and the timing of expected business milestones;
the effects of competition on the Company’s future business; the
availability of capital; and the other risks discussed under the
heading “Risk Factors” in the Company’s Annual Report on Form 10-K
filed on March 31, 2021, as amended and supplemented by the 10-K/A
filed May 17, 2021 and other documents that the Company files with
the SEC in the future. If any of these risks materialize or our
assumptions prove incorrect, actual results could differ materially
from the results implied by these forward-looking statements. These
forward-looking statements speak only as of the date hereof and the
Company specifically disclaims any obligation to update these
forward-looking statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20210517005923/en/
XL Fleet Media Contact: PR@xlfleet.com
XL Fleet Investor Contact: xlfleetIR@icrinc.com
World Energy Efficiency Services Contact:
info@worldenergyes.com
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