News Summary
Spire Inc. has announced a $2.48 billion agreement to acquire the Tennessee operations of Piedmont Natural Gas, expanding its customer base by over 200,000. The deal, set to close in the first quarter of 2026, will see the operations rebranded as Spire Tennessee. This acquisition is expected to enhance Spire’s utility business and support its growth strategy amidst increasing energy demands in the Nashville area.
Tennessee – Spire Inc. has announced a significant agreement to acquire the Tennessee operations of Piedmont Natural Gas, a subsidiary of Duke Energy, in a transaction valued at $2.48 billion. This strategic move will expand Spire’s customer base by adding over 200,000 customers situated primarily in the Nashville metropolitan area. The acquisition is seen as a crucial step in advancing Spire’s long-term growth objectives.
The deal is projected to close in the first quarter of 2026, contingent upon necessary regulatory approvals. Once finalized, the acquired business will operate under the name Spire Tennessee. This acquisition is viewed as a substantial enhancement to Spire’s regulated utility business, contributing to the company’s overall portfolio which currently spans operations in Missouri, Alabama, and Mississippi.
Piedmont Natural Gas operates as the largest investor-owned natural gas utility in Tennessee and serves a combined customer base of over 1.2 million across North Carolina, South Carolina, and Tennessee. The company’s infrastructure includes nearly 3,800 miles of distribution and transmission pipelines, as well as a liquefied natural gas facility. The acquisition of these assets positions Spire to capitalize on the rapidly growing natural gas demands in the Nashville area.
The financial structure of the acquisition will involve a combination of debt, equity, and hybrid securities. Furthermore, Spire is considering the sale of some non-utility assets to raise funds for this significant investment. Key investment advisory roles were filled by BMO Capital Markets, which served as the exclusive financial advisor, along with Newlin Capital Advisors providing additional support. Legal counsel for the transaction was provided by Sidley Austin, with Bradley Arant Boult Cummings also contributing.
The leadership of both companies sees the acquisition as a natural fit, with Spire’s CEO highlighting a commitment to community service and sustainability. Duke Energy’s leadership also expressed confidence in Spire’s ability to manage and grow the Tennessee operations effectively.
The acquisition supports Spire’s ongoing strategy to fund investment opportunities that are reflective of the record customer growth being experienced in the Nashville area. The company is well-positioned to enhance its service offerings and infrastructure as a result of this transaction, which will further solidify its presence in the natural gas market across the Southeastern United States.
This acquisition marks an important milestone for Spire Inc. as it enhances its capability to serve more customers while taking concrete steps towards meeting the increasing energy demands of the region. With the growing emphasis on utility efficiency and investment in natural gas infrastructure, Spire’s move aligns with broader trends within the energy sector aimed at accommodating the evolving needs of consumers.
In summary, Spire Inc.’s planned acquisition of Piedmont Natural Gas’s Tennessee operations represents a multi-billion dollar investment into a market with strong growth potential, further enhancing Spire’s footprint in the utility sector and supporting its mission to meet rising energy demands efficiently.
Deeper Dive: News & Info About This Topic
- Pulse 2.0: Spire to Buy Piedmont Natural Gas for $2.48 Billion
- WSMV: Piedmont Natural Gas Acquired by Spire Inc. for $2.48B
- PR Newswire: Spire to Acquire Tennessee Piedmont Natural Gas Business
- Axios: Duke Energy Sells Piedmont Natural Gas for $2.48 Billion
- Google Search: Spire Piedmont Natural Gas Acquisition
Author: STAFF HERE BRISTOL WRITTER
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