Proterra Inc. and Proterra Operating Company Inc. are in a voluntary Chapter 11 bankruptcy process in the US. (Earlier post.) Volvo Group has been selected as the winning bidder in an auction for the business and assets of the Proterra Powered business unit at a purchase price of US$210 million.
The auction of this portion of the Proterra business was “Track B” of the Chapater 11 sales process. The “Track A” auction for Proterra’s Transit and Energy business lines, including the company’s Valence fleet and energy management product, is scheduled to take place on Monday, 13 November 2023.
The transaction between Proterra Inc. and Proterra Operating Company as sellers and Volvo is subject to approval by the bankruptcy court in the US. Proterra will seek the bankruptcy court’s approval of the acquisition on 28 November 2023. In addition, closing of the transaction, which is expected early 2024, will be subject to merger clearance and certain other conditions.
The assets to be acquired include a development center for battery modules and packs in California and an assembly factory in South Carolina. With this acquisition, Volvo Group will complement the current, and accelerate its future, battery-electric road map.
The transaction has no material impact on the Volvo Group financial performance.