News Summary
Spire has announced its acquisition of Piedmont Natural Gas for $2.48 billion, expanding its customer base by over 200,000 in the Nashville area. This strategic move is expected to enhance Spire’s earnings and position in the natural gas utility market. The Nashville operations will be integrated into Spire Tennessee, serving nearly two million customers across multiple states. The deal is pending regulatory approval and is projected to be finalized by the first quarter of 2026, significantly boosting both Spire’s footprint and customer service capabilities.
Tennessee –
Spire has announced a major agreement to acquire the Tennessee-based natural gas operations of Piedmont Natural Gas, a subsidiary of Duke Energy, for an estimated value of $2.48 billion. This transaction will significantly enhance Spire’s presence in the natural gas utility market, bringing over 200,000 new customers in the Nashville area into its portfolio.
The acquisition, which is expected to positively impact Spire’s adjusted earnings per share, aligns with the company’s long-term growth objectives. Once finalized, the Nashville operations will be integrated into a new unit operating as Spire Tennessee. This strategic move not only creates a wider footprint for Spire’s regulated operations, which currently span Missouri, Alabama, and Mississippi, but also positions the company to serve nearly two million homes and businesses combined.
The deal is projected to close in the first quarter of 2026, contingent on regulatory approvals. The primary focus of Spire’s expansion will be in the Greater Nashville area where Piedmont Natural Gas has established significant infrastructure, including approximately 3,800 miles of distribution and transmission pipelines and a liquefied natural gas facility.
To finance the acquisition, Spire plans to utilize a mix of debt, equity, and hybrid securities, while also considering the divestiture of some non-utility assets. The financial advisory services for the transaction include BMO Capital Markets as the exclusive advisor, with Newlin Capital Advisors providing additional support. Legal representation for Spire includes Sidley Austin and Bradley Arant Boult Cummings.
Piedmont Natural Gas is recognized as the largest investor-owned natural gas utility in Tennessee. The company’s extensive operations stand as a valuable asset for Spire, allowing it to bolster customer service and community relationships. Employees currently working for Piedmont Natural Gas will transition to Spire to ensure seamless business continuity and to maintain service quality for customers.
The sale will also benefit Duke Energy, as the company plans to allocate approximately $800 million from the proceeds to offset debt at Piedmont Natural Gas and enhance its capital structure. The remaining net proceeds, totaling approximately $1.5 billion, will be directed toward Duke Energy’s ambitious $83 billion five-year capital plan concentrating on energy modernization.
In summary, Spire’s acquisition of Piedmont Natural Gas will not only extend its operational footprint into Tennessee but also create a significant growth opportunity while enhancing service capabilities for a broadened customer base. The completion of this transaction is subject to approval from the Tennessee Public Utility Commission alongside other customary closing conditions. With this move, Spire is poised to strengthen its competitive position in the energy sector and advance its commitment to community engagement and customer satisfaction.
Deeper Dive: News & Info About This Topic
- Pulse2: Spire to Buy Piedmont Natural Gas for $2.48 Billion
- Reuters: Duke Energy to Sell Tennessee Natural Gas Business for $2.48 Billion
- Yellow Hammer News: Spire Expands with $2.48 Billion Acquisition
- Chemanalyst: Spire to Acquire Piedmont Natural Gas Business
- Duke Energy News: Sale of Tennessee Piedmont Natural Gas Business
- Wikipedia: Piedmont Natural Gas
- Google Search: Spire Energy Acquisition 2025
- Google Scholar: Spire Natural Gas Acquisition
- Encyclopedia Britannica: Natural Gas
- Google News: Spire Piedmont Natural Gas
Author: STAFF HERE BRISTOL WRITTER
The BRISTOL STAFF WRITER represents the experienced team at HEREBristol.com, your go-to source for actionable local news and information in Bristol, Sullivan County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Bristol Rhythm & Roots Reunion, NASCAR races at Bristol Motor Speedway, Border Bash concert series, and the Hot Bristol Night Car Show. Our coverage extends to key organizations like the Bristol Chamber of Commerce, Believe in Bristol, and the Birthplace of Country Music, plus leading businesses in healthcare, manufacturing, and entertainment that power the local economy such as Ballad Health, Strongwell, and Bristol Motor Speedway. As part of the broader HERE network, including HEREChattanooga.com, HEREKnoxville.com, HEREMemphis.com, and HERENashville.com, we provide comprehensive, credible insights into Tennessee's dynamic landscape.
