Spruce Power (formerly known as XL Fleet) has completed its strategic transformation to a pure play clean energy solutions business. Spruce Power will cease operations of its hybrid and drivetrain-related business lines, including all product development and commercial activities.
The company entered into a definitive agreement whereby The Shyft Group USA Inc., a wholly owned subsidiary of The Shyft Group Inc., will assume completion of a pilot development agreement with the Department of Defense (DOD) related to vehicle hybridization. Spruce will retain rights to potential future royalties from the program.
Related to the development opportunity, Shyft will acquire from XL Fleet certain technical equipment and assume a lease in Wixom, Mich., related to the initiative. Shyft is also expected to offer employment to engineers and others currently employed by XL Fleet.
In a separate transaction, Spruce has sold certain battery inventory and its legacy hybrid technology to RMA Group, an automotive and equipment supplier in Southeast Asia.
The company anticipates that these actions will be completed by January 1, 2023.
“These actions transform our business into a pure-play provider of clean energy solutions to residences and small businesses,” says Eric Tech, CEO of Spruce Power. “We are excited that our former colleagues will have a new opportunity with Shyft to bring EV solutions to specialty commercial vehicle manufacturing, assembly, and upfit. We wish them well in the transition.”
