Spire Inc. announced it has agreed to sell its Mississippi local distribution company (Spire Mississippi) to Delta Utilities, a company backed by Bernhard Capital Partners, for $75 million in cash.
The transaction represents a 1.4x multiple of 2025 rate base.
Proceeds will be used to fund planned infrastructure investments across Spire's regulated gas utilities in Alabama, Missouri and Tennessee, benefiting customers while supporting long-term shareholder value.
Spire Mississippi's operations include approximately 745 miles of distribution pipelines serving approximately 18,000 customers in south-central Mississippi, including Hattiesburg. Spire employees who directly support the business are expected to transition to Delta Utilities to ensure continuity of service for customers and communities.
"This transaction sharpens our focus on our larger regulated gas utilities where we will continue to prioritize modernizing our infrastructure while supporting customer affordability," said Scott Doyle, president and chief executive officer of Spire. "We're confident Delta will be a strong operator for the benefit of both employees and customers. I am deeply grateful to the Spire Mississippi team for their dedication and contributions over the years."
"This agreement reflects our long-term commitment to Mississippi and the customers and communities we serve," said Tim Poché, Chief Executive Officer of Delta Utilities. "By bringing these geographically aligned systems together, we can deploy capital more efficiently, strengthen service reliability and further position the company to meet customer needs today and over the long term."
The agreement is subject to customary closing conditions, including regulatory approval by the Mississippi Public Service Commission. The transaction is expected to close in the first fiscal quarter of 2027.
