On September 18, XL Fleet, Inc.,Boston, MA, a leader in vehicle electrification solutions for commercial and municipal fleets, and Pivotal Investment Corporation II, New York, NY, (NYSE: PIC), a publicly traded special purpose acquisition company, announced they have entered into a definitive merger agreement. Upon closing, the combined company will be named XL Fleet and is expected to remain listed on the New York Stock Exchange under a new ticker symbol, “XL”, with an anticipated implied enterprise value of approximately $1 billion and no material debt expected to be outstanding.
XL Fleet is a recognized leader in fleet electrification, with over 3,200 commercial and municipal vehicles deployed throughout the US and Canada which have logged over 130 million customer miles driven on the company’s hybrid and plug-in hybrid electric drive systems. Upon closing, the Company is expected to have an additional $350 million of funding, which it plans to invest in the development of new electrification technologies while also expanding into emerging markets outside of North America.
With the capital raised from this transaction, XL intends to fuel significant investments in the development of new products designed to accelerate the fleet industry’s transition from fossil fuels to electrified propulsion. The Company expects to expand its current suite of hybrid and plug-in hybrid solutions for Class 2-6 vehicles to include zero CO2 (e.g., all-electric, hydrogen fuel cell electric) drive systems for a wide range of vehicles, including those in the heavy-duty Class 7-8 vehicle space.
In addition to its electrified powertrain platform, XL provides real-time data monitoring and analytics through its XL Link solution, which it will use in part to continue developing its Electrification-as-a Service suite, featuring a range of EV services including power management, charging infrastructure, and onsite power and storage offerings. XL believes this forward-thinking approach will uniquely position the Company as a full-service provider of electrification solutions as the industry’s demand and capacity for more sustainable vehicles continues to grow.
“Fleet electrification as a whole is still in the early stages of development, and there is tremendous untapped opportunity in the years and decades ahead,” said Dimitri Kazarinoff, Chief Executive Officer of XL Fleet. “With the ability to quickly expand our teams, scale our production capacity and fund significant new product investments, we believe we will be well positioned to build on our leadership as a result of our transition to a publicly traded company. More importantly for our customers, that will mean greater access to a wider array of electrified vehicles, services and solutions to help them meet their sustainability goals.”
About XL Fleet
XL Fleet is a leading provider of vehicle electrification solutions for commercial and municipal fleets in North America, with more than 130 million miles driven by customers such as The Coca-Cola Company, Verizon, Yale University and the City of Boston. XL’s hybrid and plug-in hybrid electric drive systems can increase fuel economy up to 25-50 percent and reduce carbon dioxide emissions up to 20-33 percent, decreasing operating costs and meeting sustainability goals while enhancing fleet operations. XL’s plug-in hybrid electric drive system was named one of TIME magazine’s best inventions of 2019.
About Pivotal Investment Corporation II
Pivotal Investment Corporation II is a blank check company organized for the purpose of effecting a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization, or other similar business combination with one or more businesses or entities. Pivotal is led by Chairman and CEO Jon Ledecky, a seasoned businessman with over 35 years of investment and operational experience. He has executed hundreds of acquisitions across multiple industries and raised over $20 billion in debt and equity. He is also co-owner of the National Hockey League’s New York Islanders franchise since 2014 and a prior owner of the Washington Wizards and the Washington Capitals. Additionally, Kevin Griffin, the Chief Executive Officer and Chief Investment Officer of MGG Investment Group, LP, serves as a Pivotal director and CEO of Pivotal Spac Funding II LLC, Pivotal’s sponsor. MGG is a private investment firm managing long-term committed capital on behalf of leading endowment, foundation, pension, insurance and high net worth investors globally. Over the course of Mr. Griffin’s 20-year career, he has originated and invested over $4 billion across the capital structure of middle market businesses and has also served on numerous boards of directors.