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UGI Utilities and Argo Infrastructure Partners Reach Agreement on Purchase and Sale of UGI’s PA Electric Utility
VALLEY FORGE, Pa. & NEW YORK--(BUSINESS WIRE)--UGI Utilities, Inc. (UGI Utilities), a wholly owned subsidiary of UGI Corporation (NYSE: UGI), today announced a
About this update from Ugi Corporation
[{"type":"text","content":" VALLEY FORGE, Pa. & NEW YORK--(BUSINESS WIRE)--UGI Utilities, Inc. (UGI Utilities), a wholly owned subsidiary of UGI Corporation (NYSE: UGI), today announced a definitive agreement to sell its Electric Division to funds managed by Argo Infrastructure Partners LP (Argo), a well-established mid-market manager of essential infrastructure and utility assets. The purchase price is approximately $470 million with working capital adjustments. After-tax proceeds will be used to reduce UGI debt and for general corporate purposes, strengthening UGI's balance sheet and providing greater financial flexibility. The transaction is expected to close in the first quarter of calendar year 2027, subject to customary closing conditions and applicable regulatory approvals. UGI Utilities’ Electric Division’s assets include approximately 2,700 miles of transmission and distribution lines and 14 substations in Pennsylvania’s Luzerne and Wyoming counties that serve more than 63,000 customers. Its experienced local leadership team, strong operational, safety and customer service track record, and presence in a constructive regulatory environment make it well-positioned to continue positively supporting the customers and businesses it serves post-acquisition. “This transaction, which has an attractive valuation, reflects our focus on areas where UGI has the greatest competitive advantage,” said Robert Flexon, UGI President and Chief Executive Officer. “It enables us to deliver stronger, more consistent returns for our shareholders.” “We are pleased to partner again on our second transaction with UGI in 12 months, and we are looking forward to supporting the growth of this important electric utility,” said Jason Zibarras, Managing Partner of Argo. “This acquisition represents Argo’s fourth utility investment in Pennsylvania. Consistent with our past successes, we continue to focus on deploying capital in the compelling mid-market infrastructure space.” Argo brings a proven track record in investing in and managing essential infrastructure assets, utilities and businesses, maintaining reliability, customer service and supporting the communities they serve. Since 2013, Argo has invested billions in high-quality, essential infrastructure across contracted, regulated, concessioned and energy transition supporting businesses. Argo’s managed investments cu...