Volvo Group has announced it 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
The Volvo Group has revealed it has won the auction to acquire Proterra’s battery business for a purchase price of $210 million. This agreement comes following Proterra’s filing for Chapter 11 bankruptcy protection back in August.
Both Volvo Group and Proterra are working toward finalising the acquisition, which is expected to conclude in early 2024 pending several approvals, including that of the insolvency court, says an announcement from Proterra. Once approved, Volvo will take over Proterra’s battery development centre in California and the battery assembly plant in South Carolina, established in January 2023.
“We entered into the Chapter 11 process with a mission to maximise 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.
Chapter 11 bankruptcy proceedings are designed for companies to reorganise and protect themselves from legal actions by debtors during the restructuring process. Proterra, a company that went public in 2021, faced financial hurdles despite being valued at $1.6 billion, including debt, back in January 2021 during its merger with ArcLight Clean Transition. Proterra’s share value has fallen since the Chapter 11 announcement from a high of $1.89, to just $0.030 at the time of the Volvo announcement.