Phoenix Motorcars has announced its acquisition of Proterra Transit for a sum of $10 million. This move comes shortly after Volvo Group's acquisition of Proterra's battery business, a deal reportedly valued at $210 million. The acquisition deals are unfolding just months after Proterra, the US-based electric bus and battery manufacturer, filed for Chapter 11 bankruptcy protection.
Volvo's acquisition involves taking over Proterra's development center for battery modules and packs in California, along with the battery assembly plant in South Carolina that commenced operations in January 2023. The integration of Proterra's business into Volvo's group structure remains a point of interest.
Phoenix Motorcars' $10 million deal with Proterra includes $6.5 million for battery lease assets and the remaining $3.5 million for acquiring Proterra Transit. The acquisition is expected to expand Phoenix Motorcars' offerings, adding heavy-duty transit buses to its existing portfolio of medium-duty shuttle and school buses.
Denton Peng, CEO of Phoenix Motorcars, expressed optimism about the business synergy and growth opportunities resulting from the acquisition. He stated, “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.”
Proterra had initiated Chapter 11 bankruptcy protection proceedings in August, signaling a self-administered restructuring effort. Phoenix and Proterra will seek approval for the sale from the US Bankruptcy Court on November 28, with plans to close the deal as soon as possible if approved.
Proterra, which went public in 2021 through a SPAC merger, had a valuation of $1.6 billion, including debt, at the time. Even after the Chapter 11 announcement, the company retained a market value of $362 million. Proterra operates battery assembly plants in Greer, South Carolina, and California, processing cylindrical cells from LG Energy Solution into battery packs used in its electric buses and supplied to third-party customers.
The impact of this acquisition on existing deals involving Proterra's battery systems with companies such as the Shyft Group, Nikola, Vicinity Motor, Anadolu Isuzu, and Volta Trucks remains to be addressed by Phoenix Motorcars. The reshuffling within the EV sector reflects ongoing transformations and strategic moves as companies position themselves in the rapidly evolving electric transportation industry.