XL Fleet acquires World Energy Efficiency Services to accelerate adoption of fleet electrification and expand its charging infrastructure offering

BOSTON–(BUSINESS WIRE) – 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 equity consideration of approximately $ 16 million.

World Energy is a leading provider of energy efficiency, renewable technologies, electric vehicle charging stations and other energy solutions to customers in the New England area. By leveraging its comprehensive solutions in combination with incentive programs for utilities, project management and finance, World Energy assists companies in all aspects of the electrification process. The company provides full-service EV charger installations, including assessing a site’s electrical infrastructure, site layout of the charging area plan, and installation of equipment.

“The availability of robust electric vehicle infrastructure and charging solutions is critical to achieving the long-term electrification goals of the global industry fleet and our customers,” said Tod Hynes, Founder and President of XL Fleet. “Some of our larger customers have identified that the power constraints of fleet facilities create a unique and significant challenge when attempting to charge dozens or even hundreds of vehicles in one location. The World Energy team is filled with experts who can help solve this problem by incorporating energy efficiency measures and solar power, while also incorporating electric vehicle charging to increase the amount of energy available for recharging of fleet vehicles. ”

“We remain focused on removing barriers to electrification and are committed to making it easier, cheaper and simpler for companies to electrify their fleets,” continued Mr. Hynes. “We are extremely happy to bring World Energy’s experience and expertise internally. This transaction reflects a highly complementary addition to our XL Grid offering, improving our ability to reduce the total cost of ownership of the charging infrastructure needed to power fleet vehicles. ”

“This highly strategic complementary acquisition is consistent with our growth strategy, our focus on electrification as a service, and was made possible by our new public platform with over $ 400 million in cash,” said Dimitri Kazarinoff, CEO of XL Fleet. “As our customers seek to install and operationalize their electric fleets, they will need a transparent electric charging infrastructure. Our customers will greatly benefit from the additional 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 integrating critical charging solutions to deliver energy and cost savings to our growing customer base. ”

“World Energy’s track record of delivering energy efficiency utilities in the US market positions us to bring incredible value to XL Fleet’s range of fleet electrification and charging infrastructure solutions,” said Rick Galipeau, President of World Energy. “We are extremely excited to join the XL Fleet team and bring our business relationships to their world-class platform.”

Transaction and financial overview

Total consideration for the acquisition of World Energy is approximately $ 16 million, consisting of $ 8 million in cash paid on the closing date and the obligation to issue newly issued common shares of XL Fleet d ‘worth $ 7.0 million. The purchase price is subject to a net working capital adjustment at the closing date and an additional payment of $ 1.0 million payable based on the achievement of World Energy’s 2021 revenue target.

World Energy generated total revenue of $ 18 million and positive free cash flow for the full year 2020. The transaction was approved by the boards of directors of both companies and closed on May 17, 2021 .

Conference Call Information

XL Fleet’s management team will hold 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. EST. The call can be viewed live over the phone by dialing 855-327-6837, or for international callers, 631-891-4304 and referring to XL Fleet. You can also access the call via a live webcast accessible on the Events and Presentations page of the Investor Relations section of the Company’s website at www.xlfleet.com. A replay will be available shortly after the call and will be accessible 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 some time shortly after the call in the Investor Relations section of the site Company website at the following address: 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 over 150 million miles flown 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 propulsion systems can increase fuel consumption by 25-50% and reduce carbon dioxide emissions by 20-33%, reducing operating costs and meeting targets. sustainability while improving fleet operations. XL Fleet’s plug-in hybrid electric drive system was named one of TIME magazine’s best inventions of 2019. For more information, please visit www.xlfleet.com.

About World Energy Efficiency Services

World Energy Efficiency Services is an industry leader in providing turnkey energy efficiency solutions, renewable technologies, electric vehicle charging stations and other advanced energy solutions. Our organization is focused on improving the overall energy efficiency of our customers, directly translating into substantial savings. By improving energy efficiency and adding sophisticated controls to lighting, heating, ventilation, air conditioning, refrigeration and process equipment, customers can expect a material reduction in energy consumption, a 30 to 60% reduction in monthly utility costs and a reduced carbon footprint. By combining comprehensive energy efficiency solutions with incentive programs for utilities, project management and financing, World Energy Efficiency Services removes barriers that can deter its customers from becoming more energy efficient, adopting solutions. solar panels and / or to implement charging stations for electric vehicles.

For more information on World Energy Efficiency Services, see www.WorldEnergyES.com.

Forward-looking statements

Certain statements contained in this press release may constitute “forward-looking statements” within the meaning of federal securities laws. Forward-looking statements are generally accompanied by words such as “believe”, “may”, “will”, “estimate”, “continue”, “anticipate”, “intend”, “expect”, “should” , “Would be,” “plan”, “predict”, “potential”, “seem”, “seek”, “future”, “prospects” and similar expressions which predict or indicate future events or trends or which are not statements on historical subjects. 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 forecasts of actual performance. Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from forward-looking statements, including, but not limited to, the inability to realize the expected benefits of the combination. businesses; the effects of current and future legislation; the highly competitive nature of the Company’s business and the commercial vehicle electrification market; disputes, complaints, product liability claims and / or adverse publicity; cost increases or shortages of 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 some important customers; laws on privacy and data protection, privacy or data breaches, or data loss; general economic, financial, legal, political and commercial conditions and changes in domestic and foreign markets; the inability to convert its pipeline of sales opportunities into binding orders; risks related to the deployment of the company’s activities and the schedule of planned commercial stages; the effects of competition on the company’s future operations; 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 10-K / A filed on May 17, 2021 and d ‘documents other than the Company’s records with the SEC in the future. If any of these risks materialize or if our assumptions prove to be 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 expressly disclaims any obligation to update these forward-looking statements.

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