Proterra Selling Assets to Volvo and Phoenix Motorcar

November 19, 2023

Proterra bankruptcy update: Proterra Inc. and Proterra Operating Company, are set to undergo a transaction with Volvo, pending approval from the US bankruptcy court. The transaction, which is expected to close in early 2024, is subject to merger clearance and certain other conditions.

Volvo is set to acquire a development center for battery modules and packs in California, and an assembly factory in South Carolina. This acquisition is intended to enhance Volvo Group’s current battery-electric roadmap and expedite its future plans. The price is $210M.

Volvo mentioned “The transaction has no material impact on the Volvo Group financial performance.”

They’ll also sell off the “Proterra Transit Business” to Phoenix Motorcar, Inc., which plans on adding heavy-duty transit buses to their existing medium-duty shuttle and school buses.

Total cash consideration to be paid by Phoenix for the Proterra Transit business assets will be $10 million, consisting of $3.5 million for the Proterra Transit operating company and $6.5 million for the Proterra battery lease assets. In addition, Phoenix will pay certain cure payments and assume other liabilities, primarily warranties.

“Phoenix is delighted with the opportunity to acquire the Proterra Transit business. Proterra has built a strong market share in the full-size, zero-emission transit bus market, just as Phoenix has done in the medium-duty market. We are excited about the attractive business synergy and growth opportunities as we add a full suite of transit bus offerings to our fleet customers across North America,” said Denton Peng, CEO of Phoenix Motorcars. “In addition, Phoenix has been gaining positive momentum in the electric school bus market, and we see considerable growth opportunities as we add full-size buses to our existing lineup of Type-A school buses to help school districts shift to zero-emission buses and begin improving the air quality for their students and communities utilizing our American made school buses.”