Pennsylvania-based UGI Utilities, Inc., a subsidiary of UGI Corporation, announced it would sell its Electric Division to funds managed by Argo Infrastructure Partners LP.
The sale sharpens UGI’s focus on its natural gas business while placing its Electric Division customers and employees under Argo. The investment marks Argo’s fourth utility investment in Pennsylvania, bringing expanded capital investment and long-term infrastructure management experience to the state, officials with the company said.
“This transaction, which has an attractive valuation, reflects our focus on areas where UGI has the greatest competitive advantage,” Robert Flexon, UGI President and CEO, said. “It enables us to deliver stronger, more consistent returns for our shareholders.”
With a purchase price of approximately $470 million with working capital adjustments, the proceeds will be used to reduce UGI debt and for general corporate purposes. UGI leadership said the sale would strengthen its balance sheet and provide greater financial flexibility. The transaction is expected to close in the first quarter of 2027, subject to customary closing conditions and applicable regulatory approvals.
“We are pleased to partner again on our second transaction with UGI in 12 months, and we are looking forward to supporting the growth of this important electric utility,” Jason Zibarras, Argo’s managing partner, said. “This acquisition represents Argo’s fourth utility investment in Pennsylvania. Consistent with our past successes, we continue to focus on deploying capital in the compelling mid-market infrastructure space.”
UGI Utilities’ Electric Division’s assets include approximately 2,700 miles of transmission and distribution lines and 14 substations in Pennsylvania’s Luzerne and Wyoming counties. The Electric Division serves more than 63,000 customers, officials said.