The remaining parts of Proterra Inc find a buyer in Phoenix Motorcars
Volvo reportedly had offered 210 million dollars not even two weeks ago. Both deals come just a few months after the US electric bus and battery manufacturer filed for Chapter 11 bankruptcy protection in the US.
Volvo will take over the development centre for battery modules and packs in California and Proterra’s battery assembly plant in South Carolina, which opened in January 2023. It remains to be seen how Volvo will integrate the Proterra business into its group structure.
As for Phoenix Motors, today’s deal with Proterra includes battery lease assets worth 6.5 million dollars. The remaining 3.5 million is for Phoenix to take on Proterra Transit. The company expects the acquisition will add heavy-duty transit buses to Phoenix’s existing range of medium-duty shuttle and school buses.
“Proterra has built a strong market share in the full-size, zero-emission transit bus market, just as Phoenix has done in the medium-duty market,” said Denton Peng, CEO of Phoenix Motorcars. “We are excited about the attractive business synergy and growth opportunities as we add a full suite of transit bus offerings to our fleet customers across North America.”
Proterra filed for Chapter 11 bankruptcy protection in the US in August, effectively a self-administered bankruptcy proceeding for restructuring.
Phoenix and Proterra must, therefore, seek US Bankruptcy Court approval for the sale and will do so on 28 November. If approved, they plan to close as soon as possible after that.
Proterra went public in 2021 via the SPAC merger to facilitate access to investor funds. At the time, the company was valued at 1.6 billion dollars, including debt. At the last close of trading before the Chapter 11 bankruptcy announcement, Proterra still had a market value of 362 million dollars.
Proterra ramped up production at a new battery assembly plant in Greer, South Carolina, this January. The company operated another plant in California. In both cases, cylindrical cells from LG Energy Solution are processed into battery packs used in Proterra’s electric buses and by third-party customers.
Phoenix Motorcars needs yet to mention how it may integrate existing deals from Proterra.