Acquisition of Piedmont Natural Gas' Tennessee Assets Valued at $2.48 Billion by Spire
In a significant move, Spire Inc. has announced its acquisition of Piedmont Natural Gas's Tennessee local distribution business from Duke Energy for $2.48 billion. The deal, which is expected to close in early 2026, subject to regulatory approvals, will significantly expand Spire's regulated business.
The acquisition adds over 200,000 customers in the Nashville area to Spire's portfolio, increasing its utility customer base to nearly two million homes and businesses across Missouri, Alabama, Mississippi, and Tennessee. Piedmont Natural Gas, Tennessee's largest investor-owned natural gas utility, operates nearly 3,800 miles of distribution and transmission pipelines and a liquefied natural gas facility in the rapidly growing Nashville metro area.
The purchase price represents approximately a 1.5x multiple of Piedmont's estimated 2026 rate base for Spire and a 1.8x multiple of Duke Energy’s 2024 year-end rate base. Duke Energy will use about $800 million of the proceeds to pay down Piedmont’s debt and the remainder (around $1.5 billion) to fund its large $83 billion five-year capital investment plan.
The transaction is accretive to Spire’s adjusted earnings per share and is projected to support long-term adjusted EPS growth of 5-7% annually. Scott Doyle, president and CEO of Spire, expressed excitement about the acquisition, stating, "This acquisition expands our core utility business and increases our utility customer base to nearly two million homes and businesses."
Harry Sideris, Duke Energy president and CEO, expressed confidence in Spire's ability to 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. Sideris also thanked Spire's customers and the Nashville community for allowing Piedmont Natural Gas to serve as their trusted energy partner, regional supporter, and neighbor for more than 40 years.
Spire plans to fund the acquisition through a combination of debt, equity, and hybrid securities. The company is eager to build on the foundation of exceptional customer service and community engagement that Piedmont Natural Gas customers in Tennessee have enjoyed for years. Sideris believes that the Piedmont Natural Gas team has set the bar for what it means to be a best-in-class natural gas business and will continue to do so for many years to come.
BMO Capital Markets acted as the exclusive financial advisor to Spire, with additional advisory support provided by Newlin Capital Advisors. Sidley Austin acted as lead legal counsel to Spire, with further legal counsel provided by Bradley Arant Boult Cummings. Spire looks forward to welcoming Piedmont Natural Gas's employees and customers and becoming an active participant in the growing Nashville business community.
The regulatory approval process is ongoing, with the Tennessee Public Utility Commission review and Hart-Scott-Rodino process underway. Closing is anticipated in Q1 or early 2026. Spire is considering the sale of some non-utility assets to help finance the deal. The new Spire Tennessee unit is expected to integrate seamlessly, capitalizing on customer growth and economic development trends in the Nashville metropolitan area.
In summary, Spire's acquisition of Piedmont Natural Gas's Tennessee assets is a strategic move that increases its utility customer base and infrastructure size, is pending regulatory approvals expected to conclude by early 2026, and is projected to provide meaningful accretive earnings growth and scale benefits over the long term.
- The transaction will not only increase Spire's utility customer base, but also introduces them to the finance sector, as Duke Energy will use a significant portion of the proceeds to fund its large capital investment plan in the industry.
- Piedmont Natural Gas, an energy company, operates extensively in the rapidly growing Nashville metro area, with a diverse portfolio including distribution, transmission pipelines, and a liquefied natural gas facility.
