Spire (NYSE:SR) announced a strategic divestiture of its Mississippi local distribution company to Delta Utilities for a total purchase price of $75 million.
The transaction represents a 1.4x multiple of the utility's 2025 rate base, marking a clean exit for Spire from the Mississippi market as it prioritizes infrastructure investments in more concentrated service areas.
The sale encompasses a network of approximately 745 miles of pipeline serving roughly 18,000 customers.
The divestiture is part of Spire's broader portfolio optimization strategy, designed to streamline operations and reallocate resources toward its core regulated gas utilities in Alabama, Missouri, and Tennessee.
Under the terms of the agreement, the transaction is expected to close in the first fiscal quarter of 2027, pending customary regulatory approval from the Mississippi Public Service Commission.
Spire has indicated that employees currently supporting the Mississippi business are expected to transition to Delta Utilities, ensuring continuity of service and operational expertise for local customers.