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.
For further information: Media Inquiries: Natasha Kucerak, Corporate Communications Specialist, [email protected], +1 (365) 323-1421; Financial and Investor inquiries: Nick Hurst, LodeRock Advisors, [email protected], +1 (416) 799-1579