Volvo Group has been selected as the winning bidder in the Proterra sweepstakes.
Proterra Inc. and Proterra Operating Co. Inc. are in a voluntary Chapter 11 bankruptcy process in the U.S. 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, the release stated.
In August, Proterra Inc. (Nasdaq: PTRA) announced that the company is taking action to “maximize the value of its business and enhance the potential of each of its product lines,” according to a Proterra news release.
The company voluntarily filed for protection under Chapter 11 of the U.S. Bankruptcy Code in the District of Delaware in an effort to strengthen its financial position through a recapitalization or going-concern sale, the release said.
The transaction between Proterra Inc. and Proterra Operating Co. as sellers and Volvo is subject to approval by the bankruptcy court in the U.S., according to the release. 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, the release stated. With this acquisition, Volvo Group will complement the current, and accelerate its future, battery-electric road map, the release stated.
The transaction has no material impact on the Volvo Group financial performance, the release stated.
In January, Proterra had produced the first Proterra Powered EV battery at its new Powered 1 battery manufacturing plant in Greer.s