UGI Utilities has reached a definitive agreement to sell its electric division to funds managed by Argo Infrastructure Partners. The deal, valued at approximately 470 million dollars, was announced on Tuesday as part of a strategic move to sharpen the company's focus on its core natural gas business.
The electric division currently serves more than 63,000 customers across Luzerne and Wyoming counties. Its infrastructure includes roughly 2,700 miles of transmission and distribution lines and 14 substations. According to UGI, the after-tax proceeds from the sale will be used to reduce corporate debt and for other general purposes, strengthening the company's balance sheet.
Argo Infrastructure Partners is an investment firm that specializes in utility and infrastructure assets. This acquisition marks the firm's fourth utility investment in Pennsylvania. UGI leadership stated that the transition is expected to be seamless for customers, with no disruptions to service.
The transaction is expected to close in early 2027. It remains subject to customary closing conditions and must receive approval from various regulatory bodies, including the Pennsylvania Public Utility Commission. Until the sale is finalized, UGI Utilities will continue to manage and operate the electric system.
