Spire has entered an agreement to acquire the Tennessee-based natural gas business of Piedmont Natural Gas, a subsidiary of Duke Energy. The deal, valued at $2.48 billion, will add over 200,000 customers in the Nashville area to Spire’s portfolio.
The acquisition is expected to be accretive to Spire’s adjusted earnings per share and support its long-term growth targets. Pending regulatory approvals, the transaction is projected to close in the first quarter of 2026. After closing, the new unit will operate as Spire Tennessee.
The acquisition significantly expands Spire’s regulated business. Piedmont Natural Gas is the largest investor-owned natural gas utility in Tennessee, and its operations in the rapidly growing Nashville metro area will expand Spire’s utility footprint, which currently includes Missouri, Alabama, and Mississippi.
Spire plans to fund the acquisition through a combination of debt, equity, and hybrid securities, and is also considering the sale of some non-utility assets to help finance the deal.
Advisors: BMO Capital Markets acted as the exclusive financial advisor to Spire. And additional advisory support was provided by Newlin Capital Advisors. Sidley Austin acted as lead legal counsel to Spire, with further legal counsel provided by Bradley Arant Boult Cummings.
KEY QUOTES:
“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.”
“We’re eager to build on the foundation of exceptional customer service and community engagement that Piedmont Natural Gas customers in Tennessee have enjoyed for years. We look forward to welcoming their employees and customers, and becoming an active participant in the growing Nashville business community.”
Scott Doyle, president and chief executive officer of Spire
“The transaction allows us to efficiently fund accelerating investment opportunities driven by record customer growth and a deepening economic development pipeline. We’re 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.”
“I want to thank our customers and the Nashville community for allowing us to serve as their trusted energy partner, regional supporter and neighbor for more than 40 years. I also want to recognize the entire Piedmont Natural Gas team who support the Tennessee business for their unwavering commitment to our customers, operational excellence and industry-leading service. They have 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.”
Harry Sideris, Duke Energy president and chief executive officer
