Volvo Completes Acquisition of Proterra's Battery Business

The Volvo Group completed the previously announced transaction of the battery business from Proterra Inc. and Proterra Operating Company Inc., according to company officials.

The acquisition, which was made at a purchase price of $210 million before adjustment for inventory level at closing and was first announced in November, includes a development center for battery modules and packs in California and an assembly factory in Greer, S.C.

“These assets and the skills and competence of the Proterra team are a great complement to our current footprint and enables us to accelerate our battery-electric roadmap even further,” said Lars Stenqvist, CTO Volvo Group.

Volvo intends to run Proterra as a “going concern and deliver to selected customers.” The transaction has no material impact on the Volvo Group financial performance.

Completion of Proterra Acquisitions

In January, Phoenix Motor Inc. received the requisite approval from the U.S. bankruptcy court to complete the acquisition of the Proterra Transit business line from Proterra Inc. and Proterra Operating Company Inc.

The acquisition adds 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."