Jacobs (NYSE: J) has announced the successful completion of the spin-off of its Critical Mission Solutions and Cyber & Intelligence government services businesses, now known as Amentum Holdings, Inc. (NYSE: AMTM). This strategic move has resulted in the formation of a new, independent publicly traded company, creating a significant player in advanced engineering and technology solutions for government contracts.
The transaction represents a pivotal moment in Jacobs’ mission to evolve into a more streamlined and high-value entity. The company will continue to excel in delivering science-based consulting and advisory services, addressing some of the world’s most pressing challenges in critical infrastructure and sustainability. Jacobs retains a strong presence in key sectors, including advanced manufacturing, urban development, energy, environmental services, life sciences, transportation, and water management. Additionally, Jacobs will maintain its cutting-edge data solutions and digital technologies, which are vital for providing digitally enabled infrastructure solutions.
Bob Pragada, Jacobs’ Chair and CEO, expressed enthusiasm about the newly simplified structure. “This evolution positions Jacobs as a more resilient and focused entity in the critical infrastructure sector, enabling us to unlock high-margin opportunities while reinforcing our leadership in rapidly growing markets aligned with long-term megatrends such as life sciences and semiconductors,” Pragada stated. He emphasised the company’s commitment to not only meet but exceed client expectations and redefine success in high-growth areas.
Jacobs’ Chief Financial Officer, Venk Nathamuni, reiterated the company’s dedication to delivering high-value solutions with improved margins. He highlighted the firm’s focus on operational excellence and execution to drive stakeholder value. Nathamuni announced plans to present Jacobs’ strategic vision for the future at an Investor Day scheduled for February 18, 2025, in Miami.
According to the information statement included in the registration statement on Form 10, following the completion of the spin-off and merger, Jacobs’ shareholders now own approximately 51% of Amentum’s outstanding common stock, while Jacobs retains about 7.5%. An additional contingent consideration of approximately 4.5% of Amentum’s common stock has been placed in escrow, pending the achievement of certain operating profit targets for the Separated Business in fiscal year 2024. If Jacobs and its shareholders meet these targets, the first 0.5% of the outstanding shares will be released to Jacobs, with any further entitlement distributed pro rata to Jacobs’ shareholders.
Jacobs plans to file a Form 8-K with the U.S. Securities and Exchange Commission (SEC) by October 3, 2024, which will include unaudited preliminary pro forma consolidated financial information reflecting the Separated Businesses. Concurrently, Jacobs will provide additional financial information on its website.
With a workforce of approximately 45,000, Jacobs delivers comprehensive services across multiple sectors, including advanced manufacturing, urban development, energy, environmental services, life sciences, transportation, and water management. The company remains committed to solving complex global challenges and fostering a sustainable future. For more information, visit jacobs.com.