Volvo to acquire the battery business of U.S.-based manufacurer Proterra
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 210 million. Proterra had filed for Chapter 11 bankruptcy protection back in August. Alastair Hayfield (Interact Analysis): "This acquisition makes perfect sense".
Volvo will acquire the battery business of manufacturer Proterra, which had filed for Chapter 11 bankruptcy protection back in August. Proterra, also an electric bus manufacturer, was the battery supplier of Volta Trucks for the Volta Zero truck. Indeed, the bankruptcy declared by the Swedish e-truck manufacturer was officially due to the lack of battery supply from Proterra itself.
Now, 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 210 million.
Volvo about the acquisition of Proterra
“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”, wrote Volvo in an official note. “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”.
Alastair Hayfield (Interact Analysis) speaking
“When Proterra filed for Chapter 11 bankruptcy we predicted that it would make sense for a legacy OEM to acquire the business and integrate it in to their own”, commented Alastair Hayfield, Senior Research Director at market intelligence firm, Interact Analysis. “Volvo is the only European manufacturer to be in the global top 10 of electric truck manufacturers and is very likely the leading OEM for electrified construction equipment. This acquisition makes perfect sense as it will enable Volvo to ‘go faster’ with its electrification strategy and give it a battery manufacturing facility to support its US operations. What is not clear is whether Proterra’s agreements with other OEMs will remain”.
