08:23 AM EDT, 07/29/2025 (MT Newswires) -- Duke Energy ( DUK ) said Tuesday it signed an agreement to sell its Piedmont Natural Gas Tennessee local distribution company business to Spire (SR) for $2.48 billion in cash.

The sale is expected to close in Q1 of 2026, Duke Energy ( DUK ) said.

The agreement includes almost 3,800 miles of distribution and transmission pipelines and a liquefied natural gas facility serving approximately 205,000 customers. Primary operations will remain in the Greater Nashville area, and Duke Energy ( DUK ) employees who primarily support the business will transition over to Spire to maintain business continuity, according to a statement.

Duke Energy ( DUK ) said it plans to use around $800 million of the proceeds to offset debt at Piedmont Natural Gas to maintain its capital structure, while aiming to use existing tax credits to offset a majority of the cash taxes resulting from the transaction.

The remaining net proceeds of $1.5 billion will help fund Duke Energy's ( DUK ) $83 billion five-year capital plan, the company said.

The transaction is supported by a fully committed bridge facility with BMO Capital Markets for the entire purchase price, Spire said in a separate statement.

Permanent financing of the acquisition will be funded through a balanced mix of debt, equity, and hybrid securities, with the sale of non-utility assets as a potential source of funds, Spire said.