Spire to acquire Tennessee Piedmont Natural Gas business from Duke Energy

Spire (SR) has entered into an agreement with Piedmont Natural Gas, a wholly-owned subsidiary of Duke Energy (DUK), to acquire its Tennessee local distribution company business that serves more than 200,000 customers in the Nashville area. Spire is acquiring the business for total consideration of $2.48B on a cash-free, debt-free basis, representing a purchase price multiple of 1.5x estimated rate base in 2026. The purchase will be accretive to adjusted EPS and supportive of long-term 5-7% adjusted EPS growth. The transaction is expected to close in Q1 2026, pending Tennessee Public Utility Commission approval, HSR review and other customary closing conditions. After closing, Nashville area Piedmont Natural Gas customers will be served by a new Spire business unit, Spire Tennessee. The acquisition increases Spire’s scale of its regulated business. With nearly 3,800 miles of distribution and transmission pipelines, Piedmont Natural Gas serves as the largest investor-owned natural gas utility in Tennessee and operates in the Nashville metro area. The transaction is supported by a fully committed bridge facility with BMO Capital Markets Corp. for the entire purchase price. Permanent financing of the acquisition will be funded through a balanced mix of debt, equity and hybrid securities. Spire is also evaluating the sale of non-utility assets, such as natural gas storage facilities, as a potential source of funds.