Key Takeaways:
Spire Inc. (NYSE: SR) has finalized its $2.48 billion acquisition of the Piedmont Natural Gas business in Tennessee from Duke Energy, a move that creates the largest investor-owned natural gas utility in the state. The deal officially closed on March 31, 2026.
In a statement, the company said the acquisition expands its regulated utility footprint and supports its long-term adjusted earnings per share growth target of five to seven percent. More than 200 of Piedmont's Tennessee employees will transition to Spire as part of the agreement.
The transaction is a significant expansion for St. Louis-based Spire, which now serves 1.7 million homes and businesses across Alabama, Mississippi, and Missouri. For Duke Energy, the asset sale represents a strategic divestment to streamline its operations.
The deal underscores a broader strategic realignment for Spire. The company recently entered a separate agreement to sell its Spire Marketing gas trading business to Boardwalk Pipelines, stating the sale would simplify its business mix and improve its risk profile. Together, the transactions show a clear pivot toward the predictable returns of regulated utility assets.
Spire's acquisition of the Tennessee gas utility comes as it simultaneously divests from its more volatile non-regulated business. The company announced on March 30, 2026, that it would sell Spire Marketing Inc. to Boardwalk Pipelines, with that deal expected to close in the second quarter of 2026.
According to Spire's leadership, the sale of the marketing arm was intended to sharpen the company's focus on its core utility operations and enhance long-term earnings visibility. By redeploying capital into acquiring a large, regulated asset base from Duke Energy, Spire is doubling down on that strategy, seeking stable, long-term growth and a simplified corporate structure.
This article is for informational purposes only and does not constitute investment advice.
