Ontario-based Spark Power Group Inc. has completed its acquisition of 3-Phase Electrical Ltd. for C$15.8 million, accelerating its expansion across Canada.
Spark Power made an C$11.1 million cash payment at deal closing, issued a C$3.8 million promissory note and 887,574 common shares to certain vendors, according to an Aug. 7 news release.
The promissory note pays interest at the rate of 4% per annum and is repayable, together with accrued interest, in three equal installments not later than 120 days following each of the next three anniversary dates following closing.
Spark Power said it funded the cash portion from its acquisition facility.
The company expects the deal to be immediately accretive, before potential synergies, to its revenues and earnings. 3-Phase Electrical, a low-voltage electrical service and contracting company, generated approximately C$17.3 million in revenue and EBITDA of C$3 million on a trailing 12-month basis.
Separately, Spark Power announced the resignation of Don Morrison as a director, effective Aug. 7, for personal reasons.