Volvo Battery Solutions LLC has won the winning bid to acquire Proterra Inc’s Powered business line. Volvo’s acquisition is subject to the bankruptcy court’s approval, as well as regulatory approvals and closing conditions.
Closing of the transaction, which is expected in 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 will complement its current and accelerate its future battery-electric road map. Volvo says the transaction has no material impact on its financial performance.
“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 filed for Chapter 11 bankruptcy on Aug. 7 in the District of Delaware. The company noted the move was an “effort to strengthen its financial position through a recapitalization or going-concern sale.”
Volvo will seek the bankruptcy court’s approval of the acquisition on Nov. 28. 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 Nov. 13.
