Spire Inc. is set to acquire Piedmont Natural Gas's Tennessee business from Duke Energy for $2.48 billion, significantly expanding its utility footprint and customer base. The acquisition is expected to close in early 2026, pending regulatory approvals.
Spire Inc. today announced a definitive agreement to acquire the Tennessee local distribution company business of Piedmont Natural Gas, a wholly-owned subsidiary of Duke Energy. The deal, valued at approximately $2.48 billion on a cash-free, debt-free basis, will see Spire expand its reach significantly, adding over 200,000 customers in the rapidly growing Nashville area.
The acquisition marks a major move for Spire, which currently serves customers in Missouri, Alabama, and Mississippi. With the integration of Piedmont Natural Gas's Tennessee operations, Spire's utility customer base will grow to nearly two million homes and businesses. Piedmont Natural Gas currently operates approximately 3,800 miles of distribution and natural gas transmission pipelines in Tennessee and is the largest investor-owned natural gas utility in the state.
"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," said Scott Doyle, president and chief executive officer of Spire. Doyle emphasized Spire's commitment to safety and community, stating, "We look forward to serving customers in the Nashville area and safely delivering the energy they need." He also expressed eagerness to build upon the strong foundation of customer service and community engagement established by Piedmont Natural Gas in Tennessee.
The transaction is expected to be accretive to Spire's adjusted earnings per share and is projected to support a long-term adjusted earnings per share growth rate of 5-7%. The purchase price represents a multiple of 1.5x the estimated rate base in 2026.
For Duke Energy, the divestiture allows for a strategic reallocation of capital. Harry Sideris, Duke Energy president and chief executive officer, stated, "The transaction allows us to efficiently fund accelerating investment opportunities driven by record customer growth and a deepening economic development pipeline." Sideris expressed confidence in Spire's ability to continue the growth and success of the Tennessee natural gas business, thanking Nashville customers and the Piedmont Natural Gas team for their dedication.
Upon closing, which is anticipated in the first quarter of calendar year 2026, the Nashville area Piedmont Natural Gas customers will be served by a new Spire business unit, Spire Tennessee. The completion of the acquisition is subject to customary closing conditions, including approval from the Tennessee Public Utility Commission and the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.
