Volvo Group to Acquire Proterra’s Battery-Electric Business for $210M in Chapter 11 Bankruptcy Auction

Volvo Group to Acquire Proterra’s Battery-Electric Business for $210M in Chapter 11 Bankruptcy Auction

(IN BRIEF) Proterra Inc. and Proterra Operating Company Inc. have initiated a voluntary Chapter 11 bankruptcy process in the United States, and Volvo Group has emerged as the winning bidder in an auction to acquire the assets of the Proterra Powered business unit for $210 million. The transaction is subject to approval by the US bankruptcy court, as well as merger clearance and other conditions, with the expected completion in early 2024. Volvo Group’s acquisition includes a battery module and pack development center in California and an assembly factory in South Carolina, enhancing its battery-electric roadmap without a significant impact on its financial performance.

(PRESS RELEASE) GOTHENBURG, 10-Nov-2023 — /EuropaWire/ — Proterra Inc. and Proterra Operating Company Inc. are in a voluntary Chapter 11 bankruptcy process in the US. 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 USD 210M.

The transaction between Proterra Inc. and Proterra Operating Company as sellers and Volvo is subject to approval by the bankruptcy court in the US. 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. With this acquisition, Volvo Group will complement the current, and accelerate its future, battery-electric road map.

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

This is information that AB Volvo (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 08.00 CET on November 10, 2023.

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The Volvo Group drives prosperity through transport and infrastructure solutions, offering trucks, buses, construction equipment, power solutions for marine and industrial applications, financing and services that increase our customers’ uptime and productivity. Founded in 1927, the Volvo Group is committed to shaping the future landscape of sustainable transport and infrastructure solutions. The Volvo Group is headquartered in Gothenburg, Sweden, employs more than 100,000 people and serves customers in almost 190 markets. In 2022, net sales amounted to SEK 473 billion (EUR 45 billion). Volvo shares are listed on Nasdaq Stockholm.

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SOURCE: AB Volvo