Proterra takes in $210 million winning bid for battery assets from Volvo

By Sarah Lizee

Olympia, Wash., Nov. 10 – Proterra Inc. has selected Volvo Group as the winning bidder at auction for the company’s Proterra Powered business at a purchase price of $210 million, according to a Friday press release from the proposed purchaser.

The transaction is subject to approval by the U.S. Bankruptcy Court for the District of Delaware.

Closing is expected in early 2024 but will be subject to merger clearance and 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.

As a reminder, in addition to one or more asset sales, the debtors are soliciting any other type of strategic transaction involving the debtors or their assets, including proposals for raising debt or equity financing through a Chapter 11 plan of reorganization.

The debtors have three distinct business lines: Proterra Transit, Proterra Powered and Proterra Energy.

In light of the nature and timing of the Proterra Transit production cycle, which manufactures electric transit buses, and Proterra Energy’s synergies with Proterra Transit, the debtors set a sale timeline that has the potential to bifurcate depending on the bids the debtors receive, into a “track A” sales process for some of assets, and a “track B” process for other assets.

Specifically, the track A schedule may include any bid for a transaction including all or any portion of the assets of Proterra Transit or Proterra Energy, whereas the track B schedule included bids for all company assets that are not sold in connection with the track A process, except Proterra Valence.

The auction for the track B assets was set for Nov. 9, and the auction for the track A assets was set for Nov. 13.

A sale hearing for all assets is scheduled for Nov. 28.

Moelis & Co. LLC is acting as the company’s investment banker.

Burlingame, Calif.-based Proterra designs and manufactures zero-emission electric transit vehicles and EV technology solutions for commercial applications. The company filed bankruptcy on Aug. 7 under Chapter 11 case number 23-11120.

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