VALLEY FORGE, PA — UGI Corporation (NYSE: UGI) said its subsidiary, UGI Utilities, agreed to sell its Electric Division to funds managed by Argo Infrastructure Partners for approximately $470 million as the company sharpens its focus on its natural gas business.
The transaction is expected to close in the first quarter of calendar year 2027, subject to regulatory approvals and customary closing conditions, the companies said.
UGI said after-tax proceeds from the sale will be used to reduce debt and support general corporate purposes, improving the company’s balance sheet and financial flexibility.
The Electric Division operates about 2,700 miles of transmission and distribution lines and 14 substations serving more than 63,000 customers in Luzerne and Wyoming counties in northeastern Pennsylvania.
Robert Flexon, president and chief executive officer of UGI, said the sale aligns with the company’s strategic priorities.
“This transaction, which has an attractive valuation, reflects our focus on areas where UGI has the greatest competitive advantage,” Flexon said. “It enables us to deliver stronger, more consistent returns for our shareholders.”
Argo Infrastructure Partners said the acquisition marks its 20th investment overall and fourth utility investment in Pennsylvania.
Jason Zibarras, managing partner of Argo, said the company plans to continue investing in regulated utility infrastructure.
“This acquisition represents Argo’s fourth utility investment in Pennsylvania,” Zibarras said. “Consistent with our past successes, we continue to focus on deploying capital in the compelling mid-market infrastructure space.”
According to the companies, Argo’s managed investments include five regulated energy utilities serving more than 700,000 customers in the United States, along with electric transmission systems and energy storage assets.
Richard Klapow, managing director at Argo, described the Electric Division as a “high-quality, regulated, electric-only utility” with strong customer service and reliability performance.
UGI Utilities said electric customers will not experience service disruptions as a result of the transaction.
Hans Bell, president of UGI Utilities, said the division’s workforce helped build the utility’s reputation over more than a century of operations.
“The Electric Division has been a proud part of UGI Utilities for more than a century,” Bell said.
PJT Partners served as financial advisor to UGI, while Baker Botts acted as legal counsel. Truist Securities advised Argo, with legal counsel provided by King & Spalding.
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