UGI Utilities agreed on 28 April to sell its Electric Division, which serves more than 63,000 customers in north-east Pennsylvania, to funds managed by Argo Infrastructure Partners for about US$470m.
Why Argo Infrastructure Partners is buying UGI Utilities Electric Division
UGI chief executive Robert Flexon said the sale would help the group deliver stronger, more consistent returns for shareholders, sharpening its focus on natural gas. For Argo, a manager of essential infrastructure and utility assets, it is a further utility investment in Pennsylvania.
Deal terms and financing
The price of about US$470m is subject to working capital adjustments. UGI will apply after-tax proceeds to reducing debt and general corporate purposes, and said customers would see no service interruptions from the change of ownership.
Regulatory approvals and timing
Completion is expected in the first quarter of 2027, subject to customary conditions and applicable regulatory approvals.
Market context
The Electric Division operates about 2,700 miles of transmission and distribution lines and 14 substations in Luzerne and Wyoming counties and has been part of UGI Utilities for more than a century.
