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 $210 million, Volvo and Proterra officials announced.
The transaction between Proterra Inc. and Proterra Operating Company as sellers and Volvo is subject to approval by the bankruptcy court in the U.S.
In addition, closing of the transaction, which is expected early in 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 the acquisition, Volvo Group will accelerate its future battery-electric road map, company officials said.
The transaction has no material impact on the Volvo Group financial performance, the officials said.
Proterra said in a statement that the company had successfully concluded the “Track B” auction of its Chapter 11 sales process and Volvo Battery Solutions LLC was the winning bidder to acquire the Proterra Powered business line.
“We entered into the Chapter 11 process with a mission to maximize the potential of each of our product lines. Today, we have taken an important step towards that goal for our Proterra Powered business,” said Gareth Joyce, Proterra CEO.
Proterra Powered leverages the company’s industry-leading battery technology and expertise to electrify commercial vehicles.
Company officials said Proterra will seek the bankruptcy court’s approval of the acquisition on Nov. 28, 2023.
The “Track A” Auction for Proterra’s Transit and Energy business lines, including the company’s Valence fleet and energy management product, was scheduled to take place on Monday, Nov. 13, 2023, the officials said.
Proterra is a leader in the design and manufacture of zero-emission electric transit vehicles and EV technology solutions for commercial applications.
Proterra products are designed, engineered, and manufactured in America, with offices in Silicon Valley and South Carolina.
In December 2021, Proterra announced that as demand for commercial electric vehicles continued to grow across the United States and around the world, the company would open a new EV battery system manufacturing plant in Greer, S.C., to produce the company’s industry-leading battery systems for Proterra Powered customers’ commercial electric vehicles, including delivery and work trucks, industrial equipment, buses, and more.
Proterra said it committed to a minimum investment of at least $76 million, with additional investments planned over the next several years, and expected to create more than 200 jobs over the next several years at the 327,000-square-foot battery system production plant.
The Volvo Group said it drives prosperity through transport and infrastructure solutions, offering trucks, buses, construction equipment, power solutions for marine and industrial applications, financing and services.
The Volvo Group is headquartered in Gothenburg, Sweden, employs more than 100,000 people and serves customers in almost 190 markets.