UGI Utilities, Inc., a subsidiary of UGI Corporation (NYSE: UGI), announced a definitive agreement on April 28, 2026, to sell its Electric Division to funds managed by Argo Infrastructure Partners LP. The transaction marks a strategic shift for UGI, allowing it to concentrate on its core natural gas business, while Argo, a well-established infrastructure manager, gains a foothold in a growing Pennsylvania region.
The sale includes UGI's electric utility operations in Pennsylvania, which serve a portion of the company's more than 760,000 customers across Pennsylvania and Maryland. UGI Utilities will retain its natural gas utility business, which remains its primary focus. For Argo, this represents its 20th investment and fourth utility acquisition in Pennsylvania, underscoring its commitment to the state's regulated utility sector.
“This agreement sharpens UGI's focus on its core natural gas business while placing Electric Division customers and employees into the hands of Argo, a committed and experienced infrastructure operator with deep experience supporting regulated utilities,” the company stated in the announcement. Argo, founded by Jason Zibarras, manages over $7.5 billion in assets as of March 2026, with a long-term approach to investing in essential infrastructure, including utilities, renewable energy, and digital infrastructure.
The deal is expected to bring expanded capital investment and long-term infrastructure management expertise to the region. Argo’s investment philosophy emphasizes responsible and sustainable investing, aligning with the needs of regulated utilities that require stable, long-term stewardship.
For UGI Corporation, the sale allows the company to streamline its portfolio and allocate resources toward its natural gas distribution and marketing operations in the U.S. and Europe. UGI also has subsidiaries involved in propane distribution, renewable natural gas, and energy marketing services, as detailed on its website at https://www.ugicorp.com.
Argo Infrastructure Partners, with a track record of investing in mid-market infrastructure, aims to continue supporting the electric utility’s growth and reliability. More information about Argo is available at www.argoip.com. UGI Utilities also maintains a website at www.ugi.com for further details on its services.
The transaction is subject to customary regulatory approvals and closing conditions. No financial terms were disclosed in the announcement. The deal highlights a trend of infrastructure-focused investors acquiring utility assets, bringing specialized management and capital to essential services.
