Spire to Sell Mississippi Gas Unit for $75M, Refocus on Core Utilities
Spire Inc. will sell its Mississippi distribution business, serving 18,000 customers across 745 miles of pipelines, to Delta Utilities for $75 million in cash at a 1.4x multiple of 2025 rate base. Proceeds will fund infrastructure investments in Spire's Alabama, Missouri and Tennessee utilities before the fiscal 2027 Q1 closing.
1. Transaction Overview
Spire Inc. has agreed to sell its Spire Mississippi subsidiary to Delta Utilities for $75 million in cash, representing a 1.4x multiple of its 2025 rate base. The deal is subject to regulatory approval and is slated to close in the first quarter of Spire's 2027 fiscal year.
2. Strategic Rationale
Management intends to use the sale proceeds to accelerate infrastructure upgrades and modernization across its larger regulated gas utilities in Alabama, Missouri and Tennessee. The divestiture sharpens Spire's geographic focus on higher-volume markets and supports long-term shareholder value via targeted reinvestment.
3. Asset Details and Timeline
Spire Mississippi serves approximately 18,000 customers through about 745 miles of distribution pipelines in south-central Mississippi. Employees tied to the business will transition to Delta Utilities to maintain service continuity, with closing expected by fiscal 2027 Q1 pending Public Service Commission approval.