Phoenix Motor Inc. Completes Proterra Transit Acquisition

Phoenix Motor Inc. completed the acquisition of the Proterra Transit business line from Proterra Inc. and Proterra Operating Company Inc.

Earlier this week, Phoenix received the requisite approval from the U.S. bankruptcy court. The acquisition will add heavy-duty transit buses to Phoenix's existing product line of medium-duty shuttle and school buses.

"Phoenix is very pleased to have completed its acquisition of the Proterra Transit business and thanks all parties for their tireless efforts over the past several months to make this possible. Proterra has a strong position in the full-size, zero-emission transit bus market, just as Phoenix has in the medium-duty market. Having spent countless hours meeting with Proterra Transit team members and learning more about their business, we are more excited than ever about this acquisition opportunity," said Denton Peng, CEO of Phoenix. "We have already identified attractive growth opportunities as we add transit buses to our product offering and we look forward to servicing Proterra Transit's existing customers and developing long-term relationships with them."

Moving Forward with the Proterra Transition

Phoenix officials say they are looking forward to providing regular updates on the progress of its business as it integrates the Proterra Transit team and assets into its operations and pursues its long-term strategy to create value for all stakeholders.

Proterra announced in August that it was filing for protection under Chapter 11 of the U.S. Bankruptcy Code in the District of Delaware to “maximize the value of its business and enhance the potential of each of its product lines.”

In November, Proterra successfully concluded the “Track A” auction of its Chapter 11 sales process, with Phoenix Motor Inc. selected as the winning bidder to acquire the Transit business line and CSI GP I LLC, CSI Prodigy Holdco LP, CSI Prodigy Co Investment LP, and CSI PRTA Co-Investment LP selected as the winning bidder to acquire the Proterra Energy business line, which includes the company’s Valence fleet and energy management product offering, through a chapter 11 plan of reorganization.

Earlier in the same month, the U.S. Volvo Group was 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 assets acquired in that transaction included a development center for battery modules and packs in California and an assembly factory in South Carolina.

With the acquisition, Volvo Group expects to complement the current, and accelerate its future, battery-electric road map. That acquisition is expected to be completed in the first quarter of this year, according to Proterra officials.