UGI Utilities, Inc. (NYSE: UGI) announced a definitive agreement to sell its Electric Division to funds managed by Argo Infrastructure Partners LP for approximately $470 million, with working capital adjustments.

The transaction involves UGI Utilities' Electric Division assets, which include approximately 2,700 miles of transmission and distribution lines and 14 substations in Pennsylvania's Luzerne and Wyoming counties serving more than 63,000 customers.

UGI plans to use after-tax proceeds to reduce debt and for general corporate purposes. The transaction is expected to close in the first quarter of 2027, subject to customary closing conditions and regulatory approvals.

"This transaction, which has an attractive valuation, reflects our focus on areas where UGI has the greatest competitive advantage," said Robert Flexon, UGI President and Chief Executive Officer. "It enables us to deliver stronger, more consistent returns for our shareholders."

This marks the second transaction between UGI and Argo in 12 months and represents Argo's fourth utility investment in Pennsylvania. Argo manages over $7.5 billion in assets as of March 2026 and currently oversees five regulated energy utilities serving over 700,000 U.S. customers.

"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," said Jason Zibarras, Managing Partner of Argo.

UGI Utilities indicated there will be no disruption to service for electric customers during the transition. PJT Partners served as exclusive financial advisor to UGI Corporation, while Truist Securities advised Argo on the transaction.