Spire has entered into an agreement to acquire the Tennessee local distribution company business of Piedmont Natural Gas, a subsidiary of Duke Energy, for $2.48bn on a cash-free, debt-free basis.
The business serves more than 200,000 customers in the rapidly growing Nashville area and is expected to be accretive to Spire's adjusted earnings per share, supporting a long-term growth target of 5–7%.
The acquisition, which is scheduled to close in the first quarter of 2026, pending regulatory approvals, will result in the creation of a new business unit, Spire Tennessee.
This move significantly enhances Spire's presence in the regulated natural gas utility sector and will add nearly 3,800 miles (6115.5km) of pipelines to Spire.
Spire president and CEO Scott Doyle said: “This acquisition is a natural fit for Spire, allowing us to expand our core utility business and increase our utility customer base to nearly two million homes and businesses.
“We look forward to serving customers in the Nashville area and safely delivering the energy they need.”
The transaction aligns with Spire's investment strategy, supported by Tennessee's regulatory environment, which encourages capital investment.
Duke Energy president and CEO Harry Sideris said: “The transaction allows us to efficiently fund accelerating investment opportunities driven by record customer growth and a deepening economic development pipeline.
“We are confident Spire will support the continued growth and success of the Tennessee natural gas business and serve as an incredible operator for the benefit of employees, customers and communities.”
The transaction is backed by a fully committed bridge facility from BMO Capital Markets.
Spire plans to fund the permanent financing through debt, equity and hybrid securities and is considering selling non-utility assets to raise funds.
BMO Capital Markets served as the exclusive financial advisor to Spire, with additional advisory support from Newlin Capital Advisors. Legal counsel was provided by Sidley Austin and Bradley Arant Boult Cummings.
