Spire Inc. agreed to pay $2.5 billion to amass Duke Power Corp.’s Tennessee Piedmont Pure Gasoline unit to broaden within the rising Nashville area.
The deal will give Spire Tennessee’s largest investor-owned fuel utility, with virtually 3,800 miles (6,100 kilometers) of distribution and transmission pipelines and a liquefied pure fuel facility, serving about 200,000 Nashville space prospects. The worth represents a a number of of 1.5 instances Piedmont’s estimated 2026 fee base, in line with a press release Tuesday.
Spire is increasing within the center Tennessee area, the place Nashville is without doubt one of the fastest-growing US cities. The deal additionally displays a long-term pattern of utilities shedding non-core belongings, particularly fuel firms, to concentrate on extra secure, regulated operations. Duke stated it could use about $800 million of the proceeds to offset debt at Piedmont to take care of its capital construction, with the steadiness going to its five-year capital plan.
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Spire, primarily based in St. Louis, is without doubt one of the largest publicly traded pure fuel firms within the nation, serving Alabama, Mississippi and Missouri.
“This acquisition is a pure match for Spire, permitting us to broaden our core utility enterprise and enhance our utility buyer base to just about two million houses and companies,” Scott Doyle, Spire’s chief govt officer, stated within the assertion.
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