OAKVILLE, ON, Feb. 15, 2019 /CNW/ - Spark Power Group
Inc. (TSX: SPG, SPG.WT), parent company to Spark Power Corp.
("Spark Power" or the "Company"), a leading independent provider of
integrated power solutions to industrial, commercial and
institutional customers across North
America, today announced that its wholly-owned subsidiary,
New Electric Enterprises Inc. ("New Electric"), has officially
opened its new branch in Winnipeg,
MB.
"Our move into the Winnipeg
market was anchored by an existing food & beverage customer
that we currently serve at multiple facilities in the Ontario market," said Jason Sparaga, co-founder and co-CEO of Spark
Power Corp. "A core element of our organic growth strategy is to
open new branches in underserved markets where we can, optimally,
serve the needs and demands of our existing customers in that
region and augment that initial base of business by targeting an
array of new opportunities in an established
industrial-commercial-institutional base. We believe this strategy
allows us to begin earning a return on the relatively modest
investment in a new branch within nine to 12 months of opening,
while building an increasingly strong network of branches across
both Canada and the United States."
Spark Power acquired the Canadian operations of New Electric,
including seven Ontario-based
branches, in January 2017. In
late-2017 and mid-2018, New Electric officially opened additional
branches in Belleville, ON and
London, ON, respectively; both are
now generating a positive return. With the new branch in
Winnipeg, MB, New Electric now has
10 Canadian branches, in addition to two California branches Spark
acquired in July 2018, for a total of
12.
As part of the original Canadian branch transaction, Spark Power
also acquired New Electric's proprietary back office operating
platform and continues to employ a branch model that centralizes
core business functions at the head office level. This approach
allows branch and project managers to focus on delivering customer
solutions, driving sound financial metrics and conducting business
development, rather than on largely administrative tasks.
Spark Power intends to continue driving significant organic
growth by opening new branches in selected jurisdictions across
North America. Management
estimates the initial investment to open a 5,000 to 7,000 square
foot branch and get it to break-even is approximately $250,000. At full capacity, an individual branch
is targeted to have approximately 25 to 30 employees and contribute
approximately $5 to $6 million in annual revenue.
About Spark Power Corp.
Spark Power Corp. (TSX: SPG, SPG.WT) is a leading independent
provider of integrated power solutions to industrial, commercial
and institutional customers across North America. Spark
Power's 700+ employees help deliver powerful solutions that reduce
costs, make the environment a priority and empower our 6,500 +
customers to transition to the grid of the future. Learn more at
www.sparkpowercorp.com.
Caution Regarding Forward-Looking Statements
This news release may contain forward-looking statements
(within the meaning of applicable securities laws) which reflect
Spark Power's current expectations regarding future events.
Forward-looking statements are identified by words such as
"believe", "anticipate", "project", "expect", "intend", "plan",
"will", "may", "estimate" and other similar expressions. These
statements are based on Spark Power's expectations, estimates,
forecasts and projections and include, without limitation,
statements regarding the future success of the Company's business,
and potential expansion of the business and include, without
limitation, statements regarding the growth of Spark Power's and
New Electric's branch network, business, revenues, costs and
execution of its business strategy by Mr. Sparaga.
The forward-looking statements in this news release are not
guarantees of future performance and involve risks and
uncertainties that are difficult to control or predict. A number of
factors could cause actual results to differ materially from the
results discussed in the forward-looking statements. Readers,
therefore, should not place undue reliance on any such
forward-looking statements. Further, these forward-looking
statements are made as of the date of this news release and, except
as expressly required by applicable law, Spark Power assumes no
obligation to publicly update or revise any forward-looking
statement, whether as a result of new information, future events or
otherwise.
SOURCE Spark Power Group Inc.