Spire will sell its Mississippi gas business to Delta Utilities for $75 million, focusing on larger regulated utility markets.
Spire Inc. has revealed that it has signed an agreement to sell its Mississippi natural gas distribution business, known as Spire Mississippi, to Delta Utilities for $75 million in cash. Delta Utilities is supported by Bernhard Capital Partners, and the deal reflects a valuation equal to 1.4 times the projected 2025 rate base. This strategic move is part of Spire’s broader effort to strengthen its focus on its larger regulated natural gas operations and improve long-term value for both customers and shareholders.
The funds generated from this transaction will be directed toward planned infrastructure upgrades across Spire’s major regulated gas utilities located in Alabama, Missouri, and Tennessee. These investments are intended to improve service reliability, modernize aging infrastructure, and maintain customer affordability while also supporting the company’s future growth. By reallocating capital into these larger markets, Spire aims to create stronger operational efficiency and deliver sustainable returns over time.
Spire Mississippi currently operates around 745 miles of natural gas distribution pipelines and serves nearly 18,000 customers across south-central Mississippi, including the city of Hattiesburg. The company has played an important role in supplying natural gas services to residential and commercial users in the region. As part of the transition process, employees who are directly involved in supporting Spire Mississippi’s operations are expected to move to Delta Utilities. This step is intended to ensure uninterrupted service for customers and maintain stability for local communities throughout the ownership transfer.
Scott Doyle, President and Chief Executive Officer of Spire, stated that the sale allows the company to sharpen its focus on its larger utility operations where modernization and affordability remain key priorities. He emphasized that Spire remains committed to improving infrastructure in its core markets and believes Delta Utilities will be a capable and reliable operator for both employees and customers in Mississippi. Doyle also expressed appreciation for the dedication and valuable contributions made by the Spire Mississippi team over the years.
Tim Poché, Chief Executive Officer of Delta Utilities, highlighted that the agreement demonstrates Delta’s long-term commitment to serving Mississippi and supporting its communities. He explained that combining these geographically connected systems would allow the company to invest capital more effectively, enhance service reliability, and strengthen its ability to meet both current and future customer demands. Delta sees the acquisition as an opportunity to build a stronger and more efficient utility network in the region.
The transaction is still subject to standard closing requirements, including approval from the Mississippi Public Service Commission. Once all necessary approvals are received, the deal is expected to be finalized during the first fiscal quarter of 2027. This agreement marks an important step in Spire’s strategic restructuring while also expanding Delta Utilities’ presence in Mississippi’s natural gas sector.
