In a high-stakes development that has sent ripples through Quebec’s electric vehicle sector, a consortium of Canadian investors has submitted a revised acquisition offer for Lion Electric, potentially changing the trajectory of the pioneering EV manufacturer that has struggled to maintain momentum in recent months.
The investor group, led by Montreal-based private equity firm Champlain Ventures and including three institutional investors with significant stakes in clean energy, has tabled a C$475 million offer—representing a 27% premium over Lion’s current market valuation. This marks their second attempt after an initial proposal was rejected by Lion’s board in March as “substantially undervaluing the company’s long-term potential.”
“The revised offer reflects both the inherent value of Lion’s intellectual property and manufacturing capabilities, while acknowledging the challenging market conditions facing EV manufacturers globally,” said Martin Tremblay, spokesperson for the investor consortium in an exclusive statement to CO24.
Lion Electric, which specializes in electric school buses and commercial vehicles, has seen its stock price decline nearly 40% since January amid production delays and intensifying competition from both established automotive giants and new market entrants. The company’s St-Jérôme manufacturing facility, once heralded as the future of Quebec’s green transportation sector, has been operating at just 65% capacity according to industry analysts.
CEO Marc Bédard has remained steadfast in his commitment to Lion’s independence, telling shareholders during April’s quarterly earnings call: “We’ve weathered challenges before. Our technology platform and customer relationships represent value that isn’t fully reflected in today’s share price.”
The timing of this offer coincides with Lion’s recent announcement of a C$120 million contract with the Toronto District School Board for 215 electric school buses—the largest single order in the company’s history. Industry observers suggest this contract may have accelerated the investor group’s timeline, with the consortium likely seeing it as validation of Lion’s market position despite recent setbacks.
“What we’re witnessing is classic consolidation pressure in an emerging industry,” explains Dr. Eleanor Chen, cleantech investment analyst at RBC Capital Markets. “The early innovators like Lion face the dual challenge of scaling production while defending their first-mover advantage against new competitors with deeper pockets.”
The acquisition offer contains specific provisions regarding Lion’s Quebec operations, promising to maintain the St-Jérôme facility as the company’s manufacturing hub and pledging C$85 million in additional capital investment over three years to expand production capacity. This strategic element appears designed to address potential regulatory concerns, as Quebec’s provincial government holds significant influence over transactions involving companies deemed strategically important to the region’s economic development.
Lion’s board has acknowledged receipt of the revised offer and formed a special committee to evaluate the proposal. Sources familiar with the deliberations indicate the board is likely to respond within two weeks, though a decision may come sooner given mounting shareholder pressure for clarity on the company’s direction.
For Quebec’s broader electric vehicle ecosystem, the outcome of this acquisition battle carries significant implications. Lion represents one of the province’s most visible success stories in the transition to clean energy transportation, having secured major contracts across North America and established valuable manufacturing expertise that extends beyond the company itself.
The coming days will determine whether Lion Electric continues its independent journey or becomes part of a larger investment portfolio. Whatever the outcome, the revised offer underscores the growing recognition that Canada’s EV manufacturers represent valuable assets in the global race toward sustainable transportation solutions—even as they navigate the inevitable challenges of market maturation.
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