UGI Utilities, a subsidiary of UGI Corporation, has agreed to sell its Electric Division in Pennsylvania, US, to funds managed by Argo Infrastructure Partners for around $470m.
The acquisition cost is inclusive of adjustments for working capital.
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The transaction is scheduled to close in the first quarter of 2027, pending regulatory approvals and standard closing conditions.
UGI Corporation intends to use the after-tax proceeds to lower its debt and for general corporate needs.
The Electric Division operates roughly 2,700 miles of transmission and distribution infrastructure and 14 substations in Luzerne and Wyoming counties, serving more than 63,000 customers. Post-sale, Argo will manage the assets.
UGI has stated that customers will not experience service interruptions as a result of the ownership transition.
UGI Utilities president Hans Bell said: “As this business begins its next chapter of successful operations under Argo’s ownership, I want to highlight the exceptional people of UGI’s Electric Division, whose skill, dedication and care for customers define the organisation.
“The Electric Division has been a proud part of UGI Utilities for more than a century, and that legacy is a testament to the remarkable men and women who have built it – through every storm, every challenge and every advancement in our industry.”
Argo’s managed investments include five regulated energy utilities, two electric transmission networks and an energy storage network, with operations serving more than 700,000 customers in the US.
This transaction marks the company’s 20th investment and its fourth in the utility sector within Pennsylvania.
Argo managing partner Jason Zibarras said: “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.”
PJT Partners served as exclusive financial adviser and Baker Botts as legal counsel for UGI Corporation in this agreement.
Truist Securities advised Argo financially, with King & Spalding acting as legal counsel and Edelman Smithfield supporting financial communications.
In August 2025, Argo completed a $435m senior secured notes financing for Smoky Mountain Holdings, a joint venture with Brookfield.
